The various health accounts that allow employees and employers to contribute pre-tax dollars for medical expenses can be confusing. Below is a helpful chart with some key characteristics to help you keep them straight.*
| HRA | HSA | FSA | |
|---|---|---|---|
| Tax Treatment | Tax-free | Tax-free | Tax-free |
| Medical Expenses Allowed | IRC 213(d) Expenses w/ No Employer Limitations** | IRC 213(d) Expenses w/ No Employer Limitations** | IRC 213(d) IRC 213(d) Expenses; but no Personal Health Insurance** |
| Use for Non-Medical Expenses | None | None | None |
| Plan Maximums (2016/2017) | None | $6,550 (single); $13,100 (family) | Determined by Employer; Capped at $2,500 starting in 2013 |
| Eligibility | None or Determined by Employer | Must be linked to a high-deductible health plan (HDHP) with deductibles of at least $1,300 (individual), or $2600 (family) | None or Determined by Employer |
| Individual Employee Bank Accounts | No | Yes | No |
| Funding | Employer Only | Employer and Employee | Employer and Employee |
| Unspent Funds | Carryover determined by Employer | Carries over to next year | Maximum $500 yearly carryover |
| Portability | Determined by Employer | Portable after termination | Not portable after termination |
**IRC 213(d) Expenses: found here.
*This is not a substitute for legal advice and should not be used as such. Do not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider.