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So what can you buy with your FSA or HSA money? You can use it to pay for common health care expenses such as copayments, prescription medications and medical supplies. But many other approved products and services are eligible, too. They're called qualified medical expenses.

The main differences between HSAs and FSAs come down to eligibility and flexibility. HSAs require you to have an eligible HDHP, FSAs do not. With HSAs, there are often higher contribution limits compared to FSAs, and HSAs are portable.

What's considered an HSA-eligible plan? Under the tax law, HSA-eligible plans must set a minimum deductible and a limit, or maximum, on out-of-pocket costs for both individuals and families.

Allowed expenses include insurance copayments and deductibles, qualified prescription drugs, , and medical devices. You decide how much to put in an FSA, up to a limit set by your employer. You aren't taxed on this money.

Penalty for making excess contributions If you exceed contribution limits for an HSA or FSA, the excess amount will be subject to regular income tax. But that's not all. An excise tax of 6% will also apply to any amount that is over the contribution limit.

FSA's and HSAs are pre-tax accounts you can use to pay for healthcare related expenses. To qualify for an HSA you must have a high deductible health plan. With both FSA's and HSAs you can pay for things like co-pays medical bills and vision expenses. An FSA is like a line of credit.

You can spend FSA funds to pay deductibles and copayments, but not for insurance premiums. You can spend FSA funds on prescription medications, as well as over-the-counter medicines with a doctor's prescription. Reimbursements for are allowed without a prescription.

Generally, qualified expenses include doctor visits, medications, medical equipment, and dental and vision care for you, your spouse and any dependents.