HRA ~ HSA ~ FSA

Plan Comparisons

Features

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                    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

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

Qualified HSA

Health Savings Account

Health Savings Account

Section 220 Tax qualified

Health Savings Account


Anyone under 65

 


Minimum for 2018

$1,350 for single coverage

$2,700 for family coverage


Funds must be

in account to pay for care

 


Employer/Employee/Both


100% of deductible

Max of $3,450 for single coverage &

$6,900 for family coverage for 2018

Max of $3,500 for single coverage &

$7,000 for family coverage for 2019


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

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 $500

Employer/Employee,

or Employee only:

maximum of $2,650 in 2018

 


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 $500 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

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