Plan
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Description
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Additional Information
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Health Savings Accounts (HSA)
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A tax-exempt trust or custodial account that you set up in conjunction with a HSA eligible plan to pay or reimburse certain medical expenses you incur.
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Unused funds remain available for use in later years.
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The interest or other earnings on the assets in the account are tax free
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Portable
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Owned by the employee
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The employee, employer or any third party can contribute.
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Health Reimbursement Arrangement (HRA)
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An employer-funded arrangement used to reimburse employees for qualified medical expenses
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Must be funded solely by the employer.
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The employer controls the account
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Employees are reimbursed tax-free for qualified medical expenses
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Reimbursements of qualified claims are tax-deductible for the employer.
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Not portable.
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Medical Savings Account (MSA)
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An account created to help self-employed individuals and employees of certain small employers meet the medical care costs of the account holder, and family.
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Account designed for employers with 50 or fewer employees.
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The employee or the employer can contribute, but not both.
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Portable.
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Health Flexible Spending Arrangements (FSA)
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An arrangement that allows an employee to set aside a portion of his or her earnings to pay for qualified medical expenses.
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Account can only be established by the employer.
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FSAs are subject to an end-of-the-year "use it or lose it" requirement that limits their ability to protect against unexpected out-of-pocket medical expenses.
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Not portable.
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