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Comparing health accounts

Understanding health insurance     Ways to pay     Comparing health accounts

Tax-preferred health accounts

Health Account Savings, HSA Flexible Savings Account, FSA Health Reimbursement Arrangement, HRA
Who can get one? A person who has a high-deductible health plan that meets certain requirements Employees of companies who offer a FSA as part of their benefits package Employees of companies who offer an HRA as part of their benefits package
Who can establish it? You Your employer Your employer
Who can contribute to it? You, your employer or a family member You or your employer Only your employer
What are the maximum contribution amounts? In 2007, up to $2,850 for those in a single-person health plan or $5,650 for a family plan Employer decides Employer decides
Does the account balance carry over from one year to the next? Yes No (but there is a 2.5 month grace period that companies can implement if they choose to) Yes
Can I take it with me if I leave my job? Yes, you own the account No, you lose what's in the account Your company may — but is not required to — allow you to take the account with you when you leave
What can I spend it on? You can spend it on qualified medical expenses as defined by the IRS, except insurance premiums. However, if you have COBRA coverage, you can spend HSA dollars on your premiums, too. You can spend it on all qualified medical expenses as defined by the IRS. You can spend it on qualified medical expenses as defined by the IRS, including insurance premiums.
Can I withdraw funds to pay non-medical expenses? Yes, but you will pay penalties unless you are disabled or over 65, in which case you will pay only income tax on funds. No No