Which one will benefit me the most? Consider an HSA if you want to… Save a bunch of money on healthcare premiums Rollover your money and keep it year after year Maximize your tax savings Invest for future healthcare expenses. Consider an FSA if you want to… Get a smaller deductible Prioritize near-term healthcare expenses Manage significant prescription costs. Free money. Take it! Consider an HSA if you want to….
Anytime Only during annual enrollment or with qualifying life event Employer chooses at beginning of plan year Tax-free distribution Yes 1 Yes Yes Debit card Yes, availability varies by plan Yes, availability varies by plan Yes, availability varies by plan Can members invest?
Account overview Health plan type Account ownership Who contributes? Tax deductible contributions Adjust contribution amount? Tax-free distribution Debit card Can members invest? Tax-free earnings Long-term savings Do funds expire? Account carryover Contribution limits Account compatibility How do I enroll? Traditional health plan. Member-owned take your HSA with you. Employer-owned no portability.
Member, employer. FSAs are not portable. The account is owned by the employer, which means the individual cannot keep the FSA if his or her job status changes due to changing employers, job loss or retirement. There are no government limits on funding; the employer determines the contribution amount in the account each plan year. The employer is the sole contributor to the HRA, therefore the employer receives the tax breaks. Employees with an HRA use the funds to pay for qualified out-of-pocket medical expenses for themselves and their qualified dependents.
Unlike an FSA and HSA, the list of qualified expenses is determined by the employer and may vary from one company to the next. Starting January 1, , small employers may now offer standalone HRAs that can be used to cover the cost of health insurance premiums.
Anyone with a high-deductible plan, even if you are already enrolled in an HSA. Who owns the account? The employer who set up the plan. You You You You Who can contribute? Your employer You, your employer, family and others. You, your employer. Limit to the dollar amount that can be put in? Depends on your employer's rules. There is an IRS limit on how much you can put into it each year. Will the balance carry over into the next plan year?
Your employer may not allow or may limit the amount that can carry over. The money will stay in your account until you choose to spend it. You can save and use it into retirement. Can I take the account with me? Is it portable? No Yes, when you reach age When you withdraw the money, it is subject to income tax only. If you are under age 65, the money is subject to income tax and may also be subject to a penalty tax.
Yes, if allowed by your employer. Yes, as allowed by IRS guidelines. No No No. How do you use the money in the account?
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