| |
Health Savings Account (HSA) |
Health Reimbursement Arrangement (HRA) |
Flexible Spending Account (FSA) |
| The Basics |
A tax-advantaged account used to pay qualified medical expenses of the account holder, spouse, or dependents |
An employer-funded arrangement used to reimburse employees for qualified medical expenses |
An employer-established, tax-advantaged account funded by employees to pay for qualified medical expenses with tax-free dollars |
| Who can open the account? |
The employee or employer as long as the employee is enrolled in an HSA-eligible health plan |
The employer |
The employer |
| Who can contribute? |
Employers, employees or any third party |
The employer |
The employee |
| Who owns the account? |
The employee |
The employer |
All unspent funds revert back to the employer at year end |
| Is there a yearly contribution limit? |
Yes. $2,900 for individuals and $5,800 for families in 2008 |
Yes. Determined by the employer |
Yes. Determined by the employer |
| Do unused funds carry over to the next year? |
Yes |
Determined by employer |
No |
| Can you take the account with you if you change jobs or retire? |
Yes |
No |
No |
| Can you use the account for retirement income? |
Yes. After age 65 you can withdraw money for any reason with no penalty, although it will be taxed as income |
No |
No |