HSA, HRA, AND FSA
Pre-tax accounts are a great way to pay for health care expenses with tax-free dollars, but they’re not all created equally. Here’s a general overview:
Health Savings Account (HSA)
Health Savings Account (HSA)
Contributions
You contribute pre-tax funds from each paycheck.
Eligible expenses
Current and future medical, dental, vision, and prescription expenses
Leftover funds at the end of the year
HSA funds never expire - and you can use them in retirement!
Eligibility
You must be enrolled in a qualifying high deductible health plan (HDHP) and you cannot have any other non-HDHP health coverage.
Health Reimbursement Arrangement (HRA)
Contributions
Your employer makes contributions on your behalf; you are not able to contribute to an HRA.
Eligible expenses
Eligible expenses vary, but typically include medical and prescription costs for the current year.
Leftover funds at the end of the year
Depending on your plan, you may be able to roll over unused funds to the following year.
Eligibility
You must be enrolled in your employer’s HRA medical plan. The HRA comes with the medical plan and cannot be separated.
Flexible Spending Account (FSA)
Flexible Spending Account (FSA)
Contributions
You contribute pre-tax funds from each paycheck.
Eligible expenses
- Full health care: medical, dental, vision, prescription expenses for this year
- Limited purpose (HSA-compatible): dental & vision expenses only
Leftover funds at the end of the year
Depending on your plan, you may be able to roll over unused funds to the following year.
Eligibility
Can be paired with any medical plan (or no medical plan) - BUT you cannot have a full health care FSA and contribute to an HSA at the same time.
The materials and the information provided are not designed or intended to be applicable to any person’s individual circumstances. These statements do not constitute an offer or solicitation in any jurisdiction. All included information and data are limited only to the inputs and other financial assumptions indicated.