Using Your HSA or FSA
Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) let you pay for qualified medical expenses with pre tax dollars. Here's how they work and how they may apply to your purchase.
What they are
HSA (Health Savings Account)
A tax advantaged savings account for people with a high deductible health plan (HDHP). Funds can be used for qualified medical, dental, and vision expenses. Unused money rolls over every year, stays with you if you change jobs, and can be invested.
FSA (Flexible Spending Account)
A tax advantaged account offered through your employer for qualified medical expenses. Funds usually must be used within the plan year, though some plans allow a small carryover or grace period. You generally can't have a regular FSA and an HSA at the same time, except a limited purpose FSA.
Key differences
| HSA | FSA | |
|---|---|---|
| Who can have one | Anyone with an HDHP | Through an employer plan |
| Owned by | You | Your employer's plan |
| Rolls over | Yes | Limited, if your plan allows |
| Goes with you if you change jobs | Yes | No |
| Yearly limits | Set by the IRS each year. Check IRS.gov or your plan for current limits. | Set by the IRS each year. Check IRS.gov or your plan for current limits. |
How to use your HSA or FSA with us
- Most HSA/FSA plans require a Letter of Medical Necessity (LMN) from a licensed provider for wellness products like water ionizers and water. We're in the process of partnering with Truemed to make getting an LMN simple. Until then, ask your own provider about an LMN, or call us at 720-683-0202 and we'll point you in the right direction.
- Pay with your HSA/FSA card at checkout, or pay out of pocket and submit your receipt and LMN to your plan for reimbursement.
- Keep your receipt and your LMN for your tax records. Your plan administrator may ask for them.
- Payment options: pay in full, or for machines ask about our financing options.
Before you buy
Every plan has its own rules. Check with your HSA or FSA administrator about what's covered. Using HSA funds for expenses that don't qualify can mean income tax plus a 20% IRS penalty, so keep your documentation.
This page is general information, not tax, legal, or medical advice. Eligibility depends on your plan and on a Letter of Medical Necessity where required. Electrified Water Bar does not guarantee that any purchase qualifies. Consult your plan administrator or a tax professional.