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 2025 contribution limit? |
These limits include Tenneco’s contributions and yours |
$3,200 |
$3,200 |
|
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 |
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 $610 in your FSA can be carried over to the next year; by law, any remaining balance over $610 is forfeited from your account |
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