Plan Comparison
Features
DESCRIPTION
WHO IS ELIGIBLE?
INSURANCE
DEDUCTIBLE
REQUIREMENTS
FUNDING
REQUIREMENTS
WHO CAN CONTRIBUTE?
HOW MUCH CAN BE DEPOSITED?
WHEN ARE THE FUNDS AVAILABLE
FOR CARE?
TAX STATUS OF DEPOSITS?
RESTRICTIONS ON USE?
ROLLOVER RESTRICTIONS?
WHAT HAPPENS TO FUNDS NOT
USED ON MEDICAL CARE?
PORTABILITY
(WHO OWNS THE FUNDS)?
ANY ADDITIONAL ADVANTAGES?
HRA
Health Reimbursement Account
Section 105 Employer sponsored
Health Reimbursement
Any group w/ 2+ employees,
except Subchapter S owners
No limitations
Fund only claims
actually paid (@30% of the benefit
amount per employee)
Employer only
Employer can choose how much
to pay for care
(call AHR for options)
Funds for entire year
are available immediately
Deductible to employer,
nontaxable as income to employee
Medical care only. No other use is permitted.
May roll over to following year
Employer decides. Funds may be
rolled over into the next year, or
accounts brought to zero at the end
of the year.
Employer. The funds are never
owned by the employee
Much less expensive than employer funded HSA, can be tailored to meet the needs of any group
HSA
Health Savings Account
Section 220 Tax qualified
Health Savings Account
Anyone under 65
Minimum for 2022
$1,400 for single coverage
$2,800 for family coverage
Funds must be
in account to pay for care
Employer/Employee/Both
100% of deductible
Max of $3,650 for single coverage &
$7,300 for family coverage
When deposited
Employee: tax deductible.
Employer: Tax deductible,
not taxable to employee
Medical care ONLY; 20% tax penalty for other use
May NOT be rolled over into IRA
Remains in plan for future medical
use, or retirement after age 67.5
Employee as soon as deposited
A good choice for S-Corp owners, the best vehicle for saving & accumulating money over time
FSA
Flexible Spending Account
Section 125 Cafeteria Plan FSA
Any group w/2+ employees,
except Subchapter S owners
No limitations,
but a group health plan
MUST be in place.
Fund via payroll deduction, full
election must be made available
immediately
Employer/Employee/Both
Employer only: maximum of $550
Employer/Employee, or Employee only:
maximum of $2,850
Funds for the entire year
are available immediately
Employee: tax deductible.
Employer: Pre-tax to employee
Medical care ONLY; no other use is permitted
Maximum of $570 may be
rolled over to a subsequent year
“Use it or lose it”, except for the
rollover provision above.
Employer
The best way for employees to pay their share of their yearly medical expenses