Health Plans

HSAs vs. HRAs vs. FSAs

HSA or HRA or FSA. What's The Difference?



 Health Savings Account (HSA)Health Reimbursement Arrangement (HRA)Flexible Spending Account (FSA)
The BasicsA tax-advantaged account used to pay qualified medical expenses of the account holder, spouse, or dependentsAn employer-funded arrangement used to reimburse employees for qualified medical expensesAn 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 planThe employerThe employer
Who can contribute?Employers, employees or any third partyThe employerThe employee
Who owns the account?The employeeThe employerAll unspent funds revert back to the employer at year end
Is there a yearly contribution limit?Yes. In 2009, the maximum set by the IRS for an individual is $3,000 and the maximum contribution for family coverage is $5,950. In 2010 the maximum set by the IRS for an individual is $3,050 and the maximum contribution for family coverage is $6,150. The rates are subject to change every year, adjusted for inflation.
Yes. Determined by the employerYes. Determined by the employer
Do unused funds carry over to the next year?YesDetermined by employerNo
Can you take the account with you if you change jobs or retire?YesNoNo
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 incomeNoNo