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HSA vs FSA vs HRA (plain English)
General comparison of health savings arrangements: who owns the funds, eligibility, tax treatment, and rollover—sourced from common IRS and marketplace guidance patterns.
This article summarizes typical patterns in the United States. Your employer’s plan documents and IRS publications control your specific situation.
HSA (Health Savings Account)
- Usually paired with an HSA-eligible high-deductible health plan.
- Account is owned by you; balances can roll year to year.
- Contributions may be tax-deductible or via payroll pretax within limits.
Health FSA (Flexible Spending Account)
- Employer-sponsored; annual election with a use window.
- “Use-or-lose” historically; some plans allow limited carryover or grace periods when permitted.
HRA (Health Reimbursement Arrangement)
- Employer-funded reimbursement arrangement; notional accounts employees do not own like an HSA.
- Integration with other accounts depends on plan design.
FAQ
- Can I have both HSA and FSA?
Sometimes, with restrictions (for example, limited-purpose FSA). Read your SPD or ask your administrator.