Both flexible and health savings accounts save you thousands in taxes, but operate under completely different IRS statutes. Compare official rules, rollover limits, and Day 1 liquidity.
Understanding account ownership, annual expiration risk, and investment authority before Open Enrollment.
Verified for current 2026 rules and official 2027 IRS revenue procedures (IRS Rev. Proc. 2026-25).
| IRS Statutory Parameter | Healthcare FSA | Dependent Care FSA (DCFSA) | Health Savings Account (HSA) |
|---|---|---|---|
| Current 2026 Contribution Limit | $3,300(Per Employee) | $5,000($2,500 if Married Filing Separately) | $4,300 (Self) / $8,550 (Family)(+$1,000 catch-up if 55+) |
| Official 2027 Contribution Limit | $3,400(Projected IRS inflation ceiling) | $5,000(Statutory unindexed cap) | $4,400 (Self) / $8,750 (Family)(Official Rev. Proc. 2026-25) |
| Plan Eligibility Requirement | Any plan offered by employer | Working parent/guardian of child under 13 or disabled adult | Must be enrolled in qualifying HDHP with no disqualifying coverage |
| Funds Liquidity on Day 1 | YESIRS Uniform Coverage Rule | NOOnly funds already deducted | NOOnly settled account balance |
| Rollover & Grace Provisions | Max $660 (2026) / $680 (2027)Or up to 2.5-month grace period if plan allows | NONEStrict use-it-or-lose-it (Grace period optional) | 100% RolloverFunds never expire at year-end |
| FICA Tax Exemption (7.65%) | YES (Pre-FICA via payroll) | YES (Pre-FICA via payroll) | YESOnly if funded via payroll deductions |
| Portability Upon Separation | NOForfeited unless enrolled in COBRA | NOUnclaimed funds forfeited to employer | 100% PortableRemains your personal financial asset |
| Tax-Free Retirement Power (Age 65+) | Medical expenses only during active plan year | Dependent care services during active year only | Penalty-free for non-medicalTax-free for medical & Medicare premiums |
Match your current medical expectations and cash flow needs to the right vehicle.
If you have high predictable medical, dental, or vision expenses early in the year (e.g., Lasik, braces, or scheduled surgery), the FSA wins because your entire annual elected amount is accessible on Day 1 under the IRS Uniform Coverage rule.
Read FSA Guide →If you are healthy or can afford out-of-pocket deductibles, the HSA operates as an uncompromised "Super 401(k)." Funds compound tax-free in low-cost index funds for decades and can be reimbursed tax-free at any point in the future.
Read HSA Guide →If you have children under 13 in daycare, preschool, or summer day camp, the DCFSA lets you shield up to $5,000 from federal, state, and FICA payroll taxes—providing an automatic ~30% discount on childcare you already pay.
Read DCFSA Guide →