Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) offer tax-advantaged ways to pay for eligible expenses. An FSA allows you to set aside pre-tax dollars for certain health and/or dependent care expenses, like childcare. Contributions are deducted from your paycheck on a pre-tax basis and are typically available upfront. Each time you incur an eligible expense, you can either use the provided debit card to pay for the expense or file a claim for reimbursement from this account. Note that FSAs generally operate on a "use-it-or-lose-it" basis, meaning funds may be forfeited if not used by the plan year's end (though some offer limited carryover).

An HSA, on the other hand, is specifically for those enrolled in a High-Deductible Health Plan (HDHP), such as the Consumer Driven Health Plan (CDHP). HSA contributions are also pre-tax, but a key difference is that funds roll over year to year, can be invested, and the account is portable. While FSAs offer immediate access to funds, HSAs provide long-term savings potential. Both offer significant tax benefits, but their eligibility, rollover features, and flexibility differ.

All regular full-time and regular part-time faculty and staff are eligible to participate in a health and/or dependent care FSA, and/or an HSA if enrolled in the Consumer Driven Plan. The use of the accounts is voluntary and is subject to IRS regulations.