Team photo
Centuria Financial Group


David P. McCabe,


Financial Planner, Prudential Advisors


Jason M. Bowers,


Financial Planner, Prudential Advisors


Nathaniel D. High, RICP®

Financial Planner, Prudential Advisors


Nicholas Over

Financial Planner, Prudential Advisors


Melissa L. Lang

Client Relations Manager, Prudential Advisors


Centuria Financial Group

2333 Baltimore Blvd Suite B

Finksburg, MD 21048


Phone:  443-952-7232

September/October 2022

FSA and HSA: Alike but Different

FSA and HSA Alike but Different

Health Care Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) allow you to pay qualified out-of-pocket medical expenses with tax-free dollars. While both accounts offer tax benefits, they have some major differences.

Flexible Spending Account
A Flexible Spending Account (FSA) is a savings account established for you by your employer to pay healthcare expenses, such as doctor copays, vision and dental expenses, and prescription drug costs, for you and your dependents. Contributions are deducted from your pay throughout the year, but the full amount is available to use immediately. For 2022, the annual contribution limit is $2,850. Any money left in the account at the end of the year is forfeited unless the plan has a grace period or a rollover feature. FSA funds don’t earn interest, and, if you leave your job, any money remaining in your account is returned to your employer.

Health Savings Account
Like an FSA, HSAs let you make tax-free contributions and withdrawals to pay healthcare expenses. But, to contribute to an HSA, you must be covered under a high-deductible health plan (HDHP)* You can’t spend more than you’ve contributed to the account, but you can ask for reimbursement later on. Contribution limits in 2022 are $3,650 for individuals ($3,850 in 2023) and $7,300 for families ($7,750 in 2023). Funds roll over from year to year, and the account may be portable if you change jobs. Some HSAs offer investment options but consider carefully before you decide to invest your healthcare savings.

*An HDHP is a plan with maximum out-of-pocket amounts of $7,050 for individuals and $14,100 for families.



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Life insurance is issued by The Prudential Insurance Company of America, Newark, NJ, and its affiliates. Centuria Financial Group is not affiliated with Prudential Financial. Centuria Financial Group sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Centuria Financial Group is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Centuria Financial Group and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Prudential Advisors is a brand name of The Prudential Insurance Company of America and its subsidiaries. Melissa L. Lang is employed by David McCabe and not The Prudential Insurance Company of America or its subsidiaries.
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