You've likely heard that you can reap great tax benefits by putting money in health savings and flexible spending accounts to cover health-related expenses.
But what is the difference between the two accounts?
Both types of accounts can "make your paycheck go farther," said Jody Dietel, chief compliance officer at WageWorks, a provider of health, commuter and employee-benefit plans.
Flexible spending accounts are more widely used by savers, with WageWorks estimating there are three participants for every one health savings account holder, Dietel said. They are also not a perk for the rich, according to Dietel. Savers using both kinds of accounts have an average household income of $57,000 a year, she said.
Here's what you need to know to make one or both accounts part of your savings plan.