Plan

Description

Additional Information

Health Savings Accounts
(HSA)

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.

• Unused funds remain available for use in later years.
• The interest or other earnings on the assets in the account are tax free
• Portable
• Owned by the employee
• The employee, employer or any third party can contribute.

Health Reimbursement Arrangement
(HRA)

An employer-funded arrangement used to reimburse employees for qualified medical expenses

• Must be funded solely by the employer.
• The employer controls the account
• Employees are reimbursed tax-free for qualified medical expenses
• Reimbursements of qualified claims are tax-deductible for the employer.
• Not portable.

Medical Savings Account
(MSA)

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.

• Account designed for employers with 50 or fewer employees.
• The employee or the employer can contribute, but not both.
• Portable.

Health Flexible Spending Arrangements
(FSA)

An arrangement that allows an employee to set aside a portion of his or her earnings to pay for qualified medical expenses.

• Account can only be established by the employer.
• 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.
• Not portable.