Tax-Favored Benefits Comparison Chart

Benefit

FSA

HSA

HRA

Funds Ownership

Employer (up to $500 may carry over; remaining excess funds forfeited at end of plan year)

Individual (excess funds carry over at end of year)

Employer

Investing Interest

No interest earned

Interest earned can be invested tax-free

No interest earned

Funding Method

Funds are deposited directly into the account

Funds are deposited directly into the account

Employer has option to pre-fund account or pay at time of request

Portability

Account terminates at end of employment

Account travels with you.

Account terminates at end of employment unless account is a retiree HRA

Taxability of Funds

All contributions to Account are tax-free.

All eligible medical expenses are tax-free. All contributions to Account are tax-deductible.

All approved reimbursements are tax-free.

Funds Usage

Funds may be used for eligible expenses, including Medical and/or Dependent Care expenses.

Funds may be used for eligible medical expenses; non-medical expenses but subject to a tax penalty.

Funds may be used for eligible medical expenses only.

Access to Funds

Funds may be accessed via payment card, or reimbursed with request form.

Funds may be accessed via payment card or check.

Funds may be accessed via payment card or reimbursed with request form.

Fund contribution methods

Both Employer and Employee may contribute funds to the Account

Both Employer and Employee may contribute funds to the Account

Employer only may contribute funds to the Account

Eligibility

Any Employees meeting the Employers eligibility requirements.

Anyone under 65 with a qualified HDHP.

Any active or retired employees meeting the employers eligibility requirements. 

Cafeteria plan bundling

Account may be part of a cafeteria plan.

Account may be part of a cafeteria plan.

Account may not be part of a cafeteria plan.

Yearly contribution maximums

Set by IRS annually based on cost of living adjustments or by employer plan design, whichever is less.

Set by IRS annually based on cost of living adjustments.

Set by employer plan design.

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