FSA vs HSA: What’s the Difference and Which One Fits Your Needs?

SA vs HSA: both accounts help you save on healthcare costs, but they work differently. An FSA is a flexible spending account offered by your employer with use-it-or-lose-it rules, while an HSA is a health savings account you own that rolls over year to year. Understanding the difference between HSA and FSA matters when you're ready to invest in quality eyewear.

What Are HSA and FSA Accounts?

What is an HSA?

A health savings account lets you set aside money for eligible medical expenses on a tax-advantaged basis. To open an HSA, you must be enrolled in a high-deductible health plan. For 2025, the IRS contribution limit is $4,300 for individuals and $8,550 for families. HSA funds can roll over year to year, earn interest, and even be invested to grow over time, making them valuable for both immediate vision expenses and long-term financial planning.

What is an FSA?

A flexible spending account is an employee benefit offered through your employer that allows you to contribute pre-tax money for health care expenses. The 2025 limit is $3,300 per person. Unlike HSAs, FSA funds generally must be spent within the plan year or you lose them, though some employers offer a grace period or allow up to $640 to carry over. FSAs are generally great for covering predictable costs like prescription eyeglasses and routine eye exams.

6 Key Differences Between HSA and FSA

1. Eligibility

Anyone enrolled in a high-deductible health plan can open an HSA, regardless of employer participation. An FSA, however, is only offered as an employer-sponsored benefit during open enrollment.

2. Contribution Rules

For 2025, you can contribute up to $4,300 to an HSA as an individual or $8,550 for family health coverage. FSA contribution limits are lower at $3,300. Employers may also contribute to either account type, increasing your total savings potential.

3. Fund Ownership & Rollover

When you put money into an HSA, you own those funds permanently. They roll over year to year and stay with you if you leave your job. FSA funds, by contrast, are managed by your employer and typically must be used within the plan year, though a grace period or small rollover may be available depending on your specific plan.

4. Tax Advantages

Both accounts help you save on taxes by using pre-tax contributions to pay for eligible expenses. HSAs offer an additional benefit: HSA funds can be invested, allowing your savings to grow over time without tax on earnings.

5. Spending Flexibility

HSA funds can be used anytime, even in retirement, making them a flexible financial tool. FSA funds must be spent within your employer's plan year, so you need to estimate your healthcare spending carefully to avoid losing money.

6. Which Account Works Better for Buying Glasses?

If you want long-term savings with investment potential, choose an HSA. If you need immediate funds for prescription sunglasses or regular eyewear and your employer offers it, an FSA provides quick access to tax-free spending.

Using HSA or FSA for Eyewear

Glasses You Can Buy With HSA/FSA

Both accounts cover a range of vision-related purchases when medically necessary:

• Prescription glasses: All prescription eyeglasses qualify as eligible medical expenses under both HSA and FSA plans. Whether you choose progressive lenses or single-vision frames, you can use your benefits to cover the full cost.
  

• Blue light glasses with prescription: If your eye care professional prescribes blue light filtering lenses to address eye strain or other vision issues, these are FSA and HSA-eligible. Non-prescription blue light glasses purchased for general screen use typically don't qualify.
  

• Prescription sunglasses: These count as qualified medical expenses because they correct your vision while protecting your eyes from UV damage. Styles like the Sofia frame or Luna frame combine medical necessity with timeless design.
  

• Readers (if medically necessary): Over-the-counter readers generally aren't covered unless prescribed by your eye doctor for a specific medical condition. Check with your plan administrator or third-party provider to confirm eligibility before purchasing.
  
  

Sunglasses Eligibility Explained

• Prescription vs non-prescription: Only prescription sunglasses are eligible for HSA or FSA reimbursement because they serve a medical purpose. Fashion sunglasses without corrective lenses don't qualify as health expenses.
  

• Medical necessity: To use your HSA or FSA for sunglasses, you need a valid prescription from an eye care professional. Some plans may require documentation to prove the purchase was used to pay for a medical need rather than personal style.
  

What's Not Covered

Non-prescription fashion glasses, decorative frames without lenses, and accessories like cases or cleaning cloths typically aren't eligible expenses. If you're unsure whether a purchase qualifies, check with your plan administrator or find a form from your insurance provider for clarification.

When to Choose an HSA

Best for Long-Term Savers

If you're thinking about retirement planning and want healthcare savings that grow over time, an HSA is your best option. You can invest unused funds and let them earn interest tax-free, creating a financial cushion for future medical and dental needs.

Ideal for Higher-Deductible Plans

HSAs pair naturally with high-deductible health plans, offering tax advantages while you manage out-of-pocket costs. This setup works well if you're generally healthy and want to put aside money for occasional expenses like vision care.

Great If You Want Investment Growth

Unlike FSAs, health savings accounts let you invest contributions in mutual funds or other options through your HSA provider. Your money can grow over time, and you don't pay taxes on withdrawals for qualified medical expenses, including dental and vision care.

When to Choose an FSA

Best for Predictable Annual Spending

If you know you'll need new glasses or routine eye exams this year, an FSA helps you budget with pre-tax dollars. You can plan exactly how much to contribute based on anticipated healthcare spending.

Ideal for Families with Frequent Vision Needs

Families often face regular vision expenses, from children's eye exams to progressive readers for adults. An FSA makes it easy to manage these predictable costs without dipping into your regular budget.

Great for Immediate Eyewear Purchases

With an FSA, the full amount you elect is typically available at the start of your plan year. This means you can buy high-quality eyewear right away and pay for eligible purchases without waiting to accumulate funds in your account. Not sure which frame to get? Use our virtual try-on to know what looks best on you! 

How to Maximize Savings on Glasses With HSA/FSA

Plan Timing for Annual Purchases

Coordinate your eyewear purchases with your FSA or HSA funding cycle. If you have an FSA, consider timing major purchases before your plan year ends to use any remaining balance.

Take Advantage of End-of-Year FSA Deadlines

Don't let FSA funds expire. Review your year-end FSA benefits and spend the money on needed eyewear before the deadline. Many members discover they can upgrade to premium frames or add prescription sunglasses to their collection.

Choose Prescription Sunglasses for Bigger Value

Prescription sunglasses offer dual functionality, serving as both vision correction and sun protection. Premium styles deliver long-term value and are fully covered as qualified medical expenses. This makes them a smart way to use your health benefits while elevating your everyday style.

Stack Seasonal Sales + HSA/FSA Benefits

Watch for promotional offers on eyewear and combine them with your HSA or FSA benefits. You can take advantage of seasonal pricing while using tax-free funds, maximizing savings on quality frames and lenses.

Final Recommendation: Which Is Better for Eyewear?

The choice between an HSA or FSA depends on your health insurance plans, spending patterns, and long-term financial goals. If your employer offers a high-deductible health plan and you want funds that grow and remain portable, an HSA provides flexibility and investment potential. If you prefer immediate access to funds for predictable annual costs and your employer offers it, an FSA may be more practical. Both accounts help you save on taxes while covering essential vision care. Learn more about using your benefits for quality eyewear to make confident, informed decisions.

HSA vs. FSA FAQs

Is it better to have an FSA or an HSA?

It depends on your health plan and financial strategy. HSAs and FSAs both offer tax advantages, but HSAs provide higher contribution limits, portability, and investment growth. FSAs work better if you have predictable expenses and want immediate access to the full annual amount.

What is the downside of FSA?

The main downside is the use-it-or-lose-it rule. If you don't use your FSA funds by the end of your plan year (or grace period), you typically lose that money. FSAs also aren't portable, so you can't take them with you if you leave your job.

What are the disadvantages of an HSA?

To qualify for an HSA, you must be enrolled in a high-deductible health plan, which may not suit everyone's medical needs. There are also annual contribution limits set by the IRS, and you may face fees depending on your HSA provider or service member terms.

At what point is HSA not worth it?

An HSA may not be worth it if you have high medical costs, and a lower-deductible plan would save you more money overall. It's also less beneficial if you need frequent healthcare services and would struggle to meet the higher deductibles required for HDHP enrollment.

Can you buy eyewear accessories using FSA/HSA?

Generally, accessories like cases, cleaning cloths, and decorative chains aren't eligible for reimbursement. HSA and FSA benefits typically cover only items classified as medical expenses, such as prescription lenses and frames, not fashion accessories.

Do HSAs or FSAs cover online eyewear purchases?

Yes, both accounts cover eligible online purchases as long as the eyewear meets medical necessity requirements. You can shop for FSA and HSA-eligible sunglasses and other prescription eyewear from home and pay using your debit card or submit receipts for reimbursement.

What happens if you don't spend all your FSA funds?

If you don't spend your FSA balance by the end of the plan year, you generally lose those funds. Some plans offer a grace period of up to 2.5 months or allow a rollover of up to $640, but this depends on what your employer offers through their plan design.

Can you return glasses bought with HSA/FSA?

Return policies vary by retailer. If you return eligible eyewear purchased with HSA or FSA funds, the money typically goes back to your account. Check your specific plan's rules and the retailer's return policy before making a purchase.

Are eye exams covered under HSA and FSA?

Yes, routine eye exams are considered eligible expenses under both HSA and FSA plans. You can use your health savings account or flexible spending account to pay for annual vision screenings, prescription updates, and other preventive eye care.