HSAs, FSAs & HRAs
To help employees manage health and
dependent care costs, many employers offer health savings accounts
(HSAs), flexible spending arrangements (FSAs), or health reimbursement
arrangements (HRAs) as part of their benefits package. Learn the key
features and benefits of each account in this section.
HSAs
A HSA is a savings account that enables
an employee to pay and save for health care expenses in a tax-advantaged
way. Used in conjunction with a high deductible health plan (HDHP), a
HSA may receive contributions from any person, including the employer. Click here for more information.
FSAs
There are generally two main types of FSAs: health FSAs and dependent care FSAs.
A Health FSA allows employees to be reimbursed for medical expenses in a
tax-advantaged way without having to be enrolled in a HDHP. A
dependent care FSA reimburses employees for certain dependent care
expenses in a tax-advantaged way. FSAs are usually funded by employees,
but employers can contribute to them as well. Click here for more information.
HRAs
There are various types of HRAs. All are funded solely by employers to
help employees pay for medical expenses on a tax-free basis. However,
there are specific plan design rules for each. Click here for more information.