HSA vs. HRA

HSA vs. HRA A Health Savings Account (HSA) is an employee-owned tax advantaged savings account that helps pay for qualified medical, dental, and vision expenses. A Health Reimbursement Arrangement (HRA) is an employer-owned tax advantaged account that allows your employer to pay a portion of your deductible expenses. Below outlines the differences between these two plans. HEALTH SAVINGS HEALTH REIMBURSEMENT ACCOUNT (HSA) ARRANGEMENT (HRA) Must be enrolled in an Must be enrolled in a High ELIGIBILITY employer plan that has an HRA Deductible Health Plan Employees choose their Your employer chooses the contribution amounts up to the CONTRIBUTION contribution amount annual IRS maximum Your employer owns this account You own this account and PORTABILITY and it is not portable it is portable Your funds rollover every year Unused funds are forfeited at the ROLLOVER until they are used end of the plan year Your funds may be used for Your funds may be used for ELIGIBLE EXPENSES eligible healthcare expenses eligible deductible expenses You can invest funds over a You cannot invest HRA funds, INVESTING certain balance they are owned by your employer