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| HSA Health Reimbursement Account (IRC sec. 223) |
HRA Health Reimbursement Account (IRC sec. 105(h)) |
FSA Flexible Spending Account (IRC sec. 125) |
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| Purpose? | To pay for unreimbursed qualified medical expenses, and save for future expenses. | To reimburse for qualified medical expenses. | To reimburse for qualified medical expenses. |
| The individual owns the account? | YES | The individual or employer. | NO |
| Can the employer contribute? | YES | YES | YES |
| Is pre-tax contribution allowed? | YES | NO | YES |
| Can funds be used to pay for health care premiums? | NO (except COBRA premium or while receiving unemployment compensation) | YES | NO |
| Any annual contribution limit? | YES | NO | YES |
| Account rollovers allowed? | YES | YES | NO |
| Are account funds portable? | YES | Not required, but employer's choice. | NO |
| Any eligibility/plan design requirements? | YES (must be covered by a HDHP) | NO (employer has to offer an HRA) | NO (employer has to offer an FSA option) |
| Any penalty for withdrawal before age 65? | YES (10%) | NO | NO |
| Any interest on the account funds? | YES (interest accrues tax free) | Employer can elect to credit interest. | NO |