HSA vs. FSA: A Comparison

Last updated December 12, 2023

The chart below summarizes key differences between the Health Savings Account (HSA), Health Care Flexible Spending Account (FSA) and Limited-Purpose FSA.

	HSA	Health Care FSA	Limited-Purpose FSA
Who is eligible to contribute?	HSA Medical Plan participants who do not have other health coverage that is not a high-deductible health plan	Anyone who is not contributing to an HSA	Anyone who is contributing to an HSA
Does Tenneco contribute?	Yes	No	No
What’s the 2023 contribution limit?	$3,850 Employee $7,750 Employee + Spouse/Domestic Partner or Child or Family Age 55+ by December 31, 2023 can contribute an additional $1,000 These limits include Tenneco’s contributions and yours	$2,850 (subject to change by the IRS)	$2,850 (subject to change by the IRS)
Is it taxed?	Not unless you use it for non-eligible expenses, in which case taxes and penalties apply; after age 65, withdrawals for non-eligible expenses are taxed but no penalty	No	No
What can I use my account for?	Current-year eligible medical, dental and vision expenses not covered by any other benefit plan, including copays, coinsurance and amounts paid toward your annual deductible PLUS Future eligible expenses, including retiree medical and COBRA premiums	Current-year eligible medical, dental and vision expenses not covered by any other benefit plan, including copays, coinsurance and amounts paid toward your annual deductible	Current-year eligible dental and vision expenses not covered by any other benefit plan; after that, you can also use it for eligible medical expenses
When are funds available for use?	Funds must be deposited in your account before you can use them	The full amount you elect to contribute for the year is immediately available
What if I want to change my contribution?	You can start, stop or change your contribution amount anytime	You can start, stop or change your contribution during the year only if you have a qualifying life event
Can I invest my account?	Yes, once your balance reaches $1,000; interest earned is tax-free	No	No
What if I don’t use up my balance by year-end?	Money in your HSA is always yours; unused balance rolls over from year to year	Up to $570 in your FSA can be carried over to the next year; by law, any remaining balance over $570 is forfeited from your account

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Please note: This website provides highlights of the Tenneco benefits program for employees not covered by a collective bargaining agreement. Every effort has been made to ensure the information provided is complete and accurate. However, the information on this website is not a legal benefit plan document or employment agreement. If there are ever any conflicts between the information provided on this website and the legal plan documents, the legal plan documents will govern. Tenneco reserves the right to change or terminate any or all the benefit plans at its discretion.