|
FSA |
HRA |
HSA |
| Do contributions reduce annual tax expenses for the contributor? |
Yes |
No |
Yes |
| Is this owned by the account holder? |
No |
No |
Yes |
| Is this owned by the employer? |
Yes |
Yes |
No |
| Can the account holder contribute? |
Yes |
No |
Yes |
| Can the employer contribute? |
Yes |
Yes |
Yes |
| Does the account stay with the account holder if they retire/change jobs? |
No |
No |
Yes |
| Do unused balances roll over from year to year? |
No |
Determined by the employer. |
Yes |
| What is the annual contribution limit? |
$2,500 (2013)/$5,000 for dependent care. |
Determined by the employer. |
$3,100 for individuals/ $6,250 for families (2012). |
| What medical expenses are eligible for reimbursement? |
Code 213(d) medical expenses incurred during coverage period that would otherwise go unreimbursed; does not include insurance premiums or long-term care services. |
Code 213(d) medical expenses incurred during coverage period that would otherwise go unreimbursed; includes premiums for eligible insurances for employee/spouse/dependents, (subject to designated employer limitations). |
Code 213(d) medical expenses of account holder/spouse/dependents incurred after HSA established; does not include premiums (with limited exceptions).
HSA’s can reimburse the following premiums:
- Premiums for qualified long-term care insurance
- Premiums for COBRA health care continuation coverage
- Premiums for health coverage while an individual is receiving unemployment compensation
- For individuals over age 65, premiums for Medicare Part A or B, a Medicare HMO and the employee share of premiums for employer-sponsored health insurance, including premiums for employer-sponsored retiree health insurance. Premiums for Medigap policies are not qualified medical expenses.
|
| Are distributions for non-medical expenses permitted? |
No |
No |
Yes, distributions cannot be restricted to just medical expenses; however, distributions for non-medical expenses are taxable and subject to a 20% excise tax. |
| Are self-employed individuals eligible to have an account? |
No |
No |
Yes, but they will not be eligible to participate in a cafeteria plan used to fund HSAs in the workplace. |
| Can amounts that are unused at termination of employment continue to be spent down? |
No |
Yes, can be used until depleted, if allowed by employer’s plan. |
Yes, non-forfeitable and portable account type. |
| Is expense substantiation required? |
Yes |
Yes |
Yes, HSA account holder must retain records but may not be asked to substantiate all expenses. |
| Is claims adjudication required? |
Yes |
Yes |
No |
| Can an individual participate in more than one of these accounts at the same time? |
Yes An employee with an FSA may participate in an HRA. An employee with a Limited Purpose or Post Deductible FSA can participate in an HSA, (a traditional FSA would make an employee ineligible for an HSA). |
Yes An employee with an HRA may participate in an FSA. An employee with a Limited Purpose/High Deductible/Suspended or Retirement HRA can participate in an HSA, (a traditional HRA would make an employee ineligible for an HSA). |
Yes An employee with a Limited Purpose or High Deductible FSA or HRA, and a Deductible or Retirement HRA can participate in an HSA, (a traditional FSA or HRA would make an employee ineligible for an HSA). |
| Is this an ERISA plan? |
Yes, unless maintained by a church or governmental entity. |
Yes, unless maintained by a church or governmental entity. |
Usually no, unless an employer's action triggers ERISA under DOL guidance. |
| Is an ERISA Form 5500 required to be filed? |
Yes, with the exception of plans with fewer than 100 participants. |
Yes, with the exception of plans with fewer than 100 participants. |
No |
| Do ERISA SPD and other disclosures and adherence to ERISA's benefit claims procedures apply? |
Yes |
Yes |
No |
| Does COBRA apply? |
Yes |
Yes |
Generally no. |