| |
FSA
Flexible Spending
Account
|
HSA
Health Spending Account
|
HRA
Health Reimbursement
Account
|
| Who contributes to it? |
Employee |
Employee and/or employer |
Employer only |
| Who owns it? |
Employee |
Employee |
Employer |
| Is it portable if you leave your current employer? |
No |
Yes |
No |
| Does unused balance carry over after year-end? |
No |
Yes |
Possibly, at employer’s discretion; maximum limits may apply. |
| Is the account invested? |
No |
Yes, although a minimum balance may be required; the investment options available vary by financial institution. |
No |
| Are there any service or maintenance fees on the account? |
None to employee (employer pays). |
Yes. Typically the employer pays the fees as long as you are employed there. |
None to employee (employer pays). |
| What are the tax benefits? |
Contributions are tax-free, which reduces your taxable income. |
Contributions and earnings may be tax-free, which reduces your taxable income. |
Contributions are tax-free. |
| Can it be used for anything other than eligible health care expenses? |
No |
Yes, but if withdrawn for non-approved expenses, the money is subject to income taxes and possibly a 10% penalty. |
No |
