Whats the difference between a Health Savings Account (HSA) and a Health Reimbursement Arrangement (HRA)?
A. Both HSAs and HRAs are tax-favored accounts used to pay for qualified medical expenses. Both employers and employees may fund HSAs, while only employers may fund HRAs. Unused funds in HSAs automatically roll over each year, but funds in HRAs roll over at the discretion of the employer. HSAs are portable: if the employee switches employers, the account goes with the employee. HRAs are not portable and funds are forfeited if an employee changes employers.
Related Questions
- Can a Health Reimbursement Arrangement (HRA) or Flexible Spending Account (FSA) also be offered along with a Health Savings Account?
- Can I keep my health savings account (HSA), flexible spending account (FSA), or health reimbursement account (HRA)?
- Whats the difference between a Health Savings Account (HSA) and a Health Reimbursement Arrangement (HRA)?
