HSA vs FSA: Differences, 2026 Limits and Rollover Rules

HSA and FSA side by side

HSA limits from IRS Rev. Proc. 2025-19 (2026) and 2026-24 (2027). FSA limit and $680 carryover from IRS Rev. Proc. 2025-32. Other rules from IRS Publication 969. Your employer's plan can set lower FSA limits.
	HSA	Health FSA
Who can have one	Anyone covered by an HSA-eligible HDHP who meets the IRS rules, including self-employed people	Employees whose employer offers one. Self-employed people aren't eligible
2026 limit	$4,400 self-only, $8,750 family, plus $1,000 at 55 or older	$3,400 per employee
2027 limit	$4,500 self-only, $9,000 family, plus $1,000 at 55 or older	Not published as of October 12, 2026
Unused money	Rolls over every year	Generally forfeited, unless the plan offers a carryover (up to $680 into 2027) or a grace period of up to 2.5 months
Who owns it	You. It stays with you if you change jobs or stop working	Your employer's plan
Money available	What's in the account	Your full yearly election, from the start of the plan year
Growth	Interest and other earnings aren't taxed while in the account	No investment growth

Rollover vs use-it-or-lose-it

IRS Publication 969 calls FSAs "use-it-or-lose-it" plans. An employer can soften that in one of two ways, but not both:

Carryover: for 2026 plan years, up to $680 of unused money can carry into the next year. Anything above that is forfeited.
Grace period: up to 2.5 months after the plan year ends to spend the leftover balance.

An HSA has no deadline. The balance rolls over every year and can keep growing. Ask your HSA provider what investment options it offers. You can contribute for a year up to that year's tax filing deadline. IRS Publication 969 (2025) says 2025 contributions could be made through April 15, 2026.

Can you have both?

Usually not a general-purpose FSA. IRS Publication 969 says an employee covered by an HDHP and a health FSA that pays medical expenses generally can't contribute to an HSA. What works:

A limited-purpose FSA, typically for dental and vision, alongside an HSA.
Switching years: coverage during a general FSA's grace period doesn't block HSA contributions if that FSA balance is zero at the end of the prior plan year.

Before you sign up for both, check with your plan administrator or a tax advisor.

Which one fits you

HSA often fits: you're on an HDHP, want to save for future medical costs, or are self-employed. See HSA for self-employed people.
FSA often fits: your plan isn't an HDHP, you have predictable yearly costs like glasses, prescriptions or copays, or you need money early in the year for a known expense.
Your plan decides first: an HSA needs an HSA-eligible plan. See what a high-deductible health plan is and HDHP vs PPO.

Both pay for the same qualified medical expenses under IRS Publication 502. See what is HSA eligible and what is FSA eligible. Neither can generally pay health insurance premiums.

Gabriel and your HSA or FSA

The clinical portion of a Gabriel membership may be HSA/FSA eligible: Core $39 of the $49, Plus $69 of the $89. The wellness and concierge portion is not. Gabriel can provide an itemized statement. Check with your plan administrator or a tax advisor before you pay with HSA or FSA funds.

Paying with HSA money is different from being allowed to contribute. A membership could affect whether you can keep contributing to an HSA (IRS Notice 2026-5), so ask a tax advisor before you contribute while you're a member. Gabriel is a membership, not health insurance.

Common questions

Is an HSA or FSA better?

If you're on an HSA-eligible plan, an HSA is usually more flexible because the money rolls over and stays yours. If you're not, an FSA is the tax-free option your employer may offer.

What is the 2026 FSA limit?

$3,400 per employee, with up to $680 of unused money carrying into the next year if your plan allows a carryover (IRS Rev. Proc. 2025-32).

What are the HSA limits for 2026 and 2027?

$4,400 self-only and $8,750 family for 2026; $4,500 and $9,000 for 2027. People 55 or older can add $1,000.

Can I have an HSA and an FSA at the same time?

Generally not a general-purpose FSA. A limited-purpose FSA, usually for dental and vision, can sit alongside an HSA.

What happens to my FSA if I don't use it?

Unused money is generally forfeited unless your employer offers a carryover or a grace period of up to 2.5 months. Ask your plan which one it has.

Sources

This guide is general information, not medical advice. It does not replace a visit with a licensed clinician. Gabriel membership is not health insurance.