LH HSAs, HRAs, FSAs

HSA Meaning

Health Savings Account

HRA Meaning

Health Reimbursement Account

FSA Meaning

Flexible Spending Account

How do you get an HSA?

Must have a high deductible health plan that meets a deductible amount set by the IRS

How do you get an HRA?

Only offered through employers, you will receive the HRA when you sign up for the plan

How do you get an FSA?

Establish an FSA through your employer. It doesn’t have to be tied to a health plan.

Who funds an HSA? What happens to unused funds?

You do. You contribute pre-tax money via payroll deductions. There's a set maximum for self and a different maximum for families. These amounts generally change every year. Unused funds rollover to the next year.

Who funds an HRA?

An HRA is funded entirely by your employer. You can’t put your own money into it.

Who funds an FSA?

You contribute via payroll deductions. Your employer can also contribute.

How can you spend the HSA money?

Only used for qualified medical expenses, this does not include paying for premiums.

How can you spend the HRA money?

For premiums and medical expenses

How can you spend the FSA money?

Only qualified medical expenses, and out of pocket expenditures. You cannot use it for premiums. The amount you can spend is capped.

What happens if I leave my job if I have an HSA?

Once you’ve established an HSA, it’s yours forever.

What happens if I leave my job if I have an HRA?

You cannot take the HRA with you, it belongs to your employer.

What happens if I leave my job if I have an FSA? Is there an expiration on the benefits?

Your employer keeps the funds. Even if you stay at your job, you can lose your FSA benefits if you do not use it within one year.

Tax advantages of an HSA

Tax deductible contributions and account holders can build up their HSA by earning tax free interest as well as tax free returns from investing their funds

Tax advantages on HRA

Tax free for both you and your employer

Tax advantages on a FSA

Do not pay federal, state or SS taxes on this money