A Health Savings Account (HSA) is a tax-advantaged account created for or by individuals covered under high-deductible health plans (HDHPs) to save for qualified medical expenses. Contributions are made into the account by the individual or their employer, and are limited to a maximum amount each year. The contributions are invested over time and can be used to pay for qualified medical expenses, such as medical, dental, and vision care, as well as prescription drugs.

The maximum contribution for an HSA in 2022 is $3,650 for an individual ($3,600 for 2021) and $7,300 for a family ($7,200 in 2021).2 The annual limits on contributions apply to the total of the amounts contributed by both the employer and the employee. Individuals 55 years or older by the end of the tax year can make catch-up contributions of an additional $1,000 to their HSAs.

A flexible spending account lets you use pretax money to pay for health or dependent care expenses. A flexible spending account, or FSA, is a tax-advantaged account offered by your employer that allows you to pay for medical expenses or dependent care. Depending on the extent of your health care or dependent care costs, an FSA can help you save a lot of money on taxes, particularly since the list of eligible expenses has expanded in recent years. But if you contribute more than you spend, an FSA can backfire: Any unused funds may disappear if your employer doesn't roll them over.

​​You can use funds in your FSA to pay for certain medical and dental expenses for you, your spouse if you’re married, and your dependents. You can spend FSA funds to pay deductibles and copayments, but not for insurance premiums. You can spend FSA funds on prescription medications, as well as over-the-counter medicines with a doctor's prescription. Reimbursements for insulin are allowed without a prescription. FSAs may also be used to cover costs of medical equipment like crutches, supplies like bandages, and diagnostic devices like blood sugar test kits.

Menstrual products — including tampons, pads, liners and other similar products — are now considered qualified medical expenses, and Americans can use their health savings account (HSA), flexible spending account (FSA) and health reimbursement arrangement (HRA) to purchase these products. As of March 2020 with the passage of the CARES Act, menstrual care products like tampons and pads are fully FSA-/HSA-eligible.

​​You use your FSA by submitting a claim to the FSA (through your employer) with proof of the medical expense and a statement that it has not been covered by your plan. You will then receive reimbursement for your costs. Ask your employer about how to use your specific FSA.