What are flexible spending arrangements and health reimbursement arrangements?
Flexible spending arrangements (FSAs) and health reimbursement arrangements (HRAs) are special accounts that may be part of a cafeteria plan. An FSA, typically funded by employees, provides employees with pre-tax dollars to pay for predictable medical or dependent care expenses. An HRA is an employer funded account that reimburses employees for medical expenses. Employer contributions and reimbursements are generally excluded from income. Both these accounts are subject to the discrimination rules of self insured medical reimbursement plans under IRC Section 105.
Related Questions
- What are Medical Savings Accounts [MSAs], Health Reimbursement Accounts or Health Reimbursement Arrangements [HRAs], and Flexible Spending Accounts [FSAs]?
- Can I roll over my Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) account balance to an HSA?
- What are flexible spending arrangements and health reimbursement arrangements?
