HSA vs. HRA vs. FSA – Health Tax Benefits Explained
So many acronyms – so little time. Here’s your guide to getting tax benefits on your medical expenses. Here at SimplyInsured – we want to make your life easier.
| Health Savings Account (HSA) | Health Reimbursement Account (HRA) | Flexible Spending Account (FSA) | |
|---|---|---|---|
| Who can contribute | Employer or Employee |
Employer only |
Employer or Employee |
| Maximum yearly contribution | $3,500 single/ $6,250 family |
$2,500 | No Maximum |
| Do I lose the money in the account? | No, stays in account | Determined by employer | “Use it or lose it” |
| Funds can be spent on… | Qualified medical expenses | Qualified medical expenses and health insurance premiums | Qualified medical expenses and health insurance premiums |
| Tax Treatment | Tax-free (Federal and Social Security) | Tax-free (Federal and Social Security) | Tax-free (Federal and Social Security) |
| Eligibility Requirements | HSA qualified health insurance plan | None | None |
