HSA or HRA or FSA, What's the Difference?

Health care accounts aren't all created equal. That's why you need an experienced, trusted adviser  when it comes to your health care finances. HealthEquity is here to help you understand the sometimes complex and confusing world of health care accounts (HSA, HRA, FSA, MSA, VEBA). Here's a comparison of three of the most common accounts:

	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?	In 2011, the yearly contribution limits are $3,050 for individuals and $6,150 for families. In 2012, limits are $3,100 and $6,250.	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