HSA, FSA, HRA: what each account does and who it fits
A plain-language comparison of three account types, with the important reminder that eligibility and current limits must be confirmed.
In this guide · 5 sections
01
They differ in ownership, funding, eligibility
An HSA, FSA, and HRA can each help with eligible health expenses, but they differ in ownership, funding, eligibility, and what happens to unused amounts.
02
An HSA is individually owned
An HSA is individually owned and tied to eligibility rules that include the type of health coverage a person has. Current contribution limits and eligible expenses change, so use current official materials.
03
An FSA is an employer-sponsored arrangement
An FSA is generally an employer-sponsored arrangement funded through the plan's rules. Elections, carryover features, and access to funds depend on the specific arrangement and current requirements.
04
An HRA is funded by the employer
An HRA is funded by the employer and follows terms set in the plan. The employer determines the eligible group and reimbursement structure within applicable rules.
05
Describe the account and the health plan separately
When explaining these accounts, describe the account and the health plan separately. Confirm current figures and plan-specific terms with your carrier, broker, plan documents, or counsel.
