|
Health Savings
Accounts (HSA)
|
Health Reimbursement Arrangement (HRA) |
Flexible Spending Account (FSA) |
Who owns the funds in these accounts? |
Employee |
Employer |
Employee has use of funds during year, but unused funds revert to employer |
Who funds it? |
Employer and / or Employee |
Employer |
Employee |
Is it portable? |
Yes |
Generally not |
NO |
Can it rollover? |
Yes |
Yes (Employer sets rules) |
NO |
Employer Federal Tax Advantages? |
Employer contributions are deductible as business expenses |
Reimbursements are deductible as business expenses |
Employee pretax contributions decrease taxable income subject to FICA |
Employee federal tax advantages? |
- Employer contributions are not taxable to the employee
- Employee contributions are tax free
- Earnings are tax free
- Qualified withdrawals are tax free
|
- Employer payments for reimbursements are not taxable income to the employee
- Employee claims against the account are tax free
|
- Contributions reduce taxable income
- Distributions are tax free
|
Are there health plan requirements? |
Must be accompanied by an HSA-qualified high-deductible health plan (HDHP) |
No requirements, but generally accompanied by a high-deductible health plan (HDHP) |
None |
When are funds available? |
Immediately upon deposit |
At discretion of employer |
At beginning of plan year |
Can interest accrue? |
Yes |
NO |
NO |
