Who owns a Flexible Spending Account (FSA) and a Health Savings Account (HSA)?

• A. FSA is owned by the employee; HSA by the employer.
• B. Both are owned by the government.
• C. FSA is owned by the employer; HSA by the individual.
• D. Ownership is the same for both.

Answer: (C)

Ownership of these accounts hinges on who controls the funds and what happens if you change jobs. FSAs are employer-established accounts funded by the employer (often with some employee payroll contributions) and are generally owned and governed by the employer, with limited portability if you leave the job. HSAs are owned by the individual; the account follows the person, remains portable, and funds can roll over from year to year regardless of employment changes. Because of this distinction, the correct understanding is that the FSA is owned by the employer and the HSA is owned by the individual.