Alderette Insurance Agency, Inc.

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HSA's, HRA's and FSA's

HSA (Health Savings Account)

HRA (Health Reimbursement Arrangement)

FSA (Fexible Spending Account)

Health Care FSA

Dependent Care FSA

Limited Purpose FSA

What kind of account is it?

A savings account that can only be used to pay for covered health care costs (compatible with a High Deductible Health Plan).

A reimbursement account set up and funded by the employer to help employees pay for eligible health care costs.

An account that is used to pay for eligible health care costs for employee and covered dependents.

An account to help pay for eligible dependent care services for employees' covered dependents such as children under age 13 or disabled dependents of any age.

An account that is used to help pay for eligible dental & vision costs for employees and their covered dependents when paired with an HSA.

Who is eligible to enroll?

Anyone enrolled in a qualified HDHP.

Anyone who is part of an employer sponsored health plan.

Any employee with an employer plan that includes a FSA.

Employees with dependents age 12 and under or disabled dependents of any age.

Employees enrolled in a HDHP. Can also be combined with an HSA.

Account owner

Employee

Employer

Employer

Employer

Employer

Who contributes?

Employer, employee, emplees's covered dependants

Employer

Employer and employee

Employer and employee

Employer and employee

Is there a limit to the dollar amount that can be put in?

Yes (up to IRS limits)

Amount set by employer

Yes (up to IRS limits)

Yes (up to IRS limits)

Yes (up to IRS limits)

Can the balance carry forward to next plan year?

Yes

Employer decides if carry over is allowed or determines the amount that can be carried over.

Depending on the plan, employee may be able to carry over up to $500 to next plan year.

No. Dependent Care FSAs are a use or loose it benefit.

Depending on the plan, employee may be able to carry over up to $500 into the next plan year. 

Can the employee take take the account with them when they leave the company?

Yes

No

No

No

No

Can the account earn interest?

Yes

No

No

No

No

Can the money in the account pay for COBRA or other plan premiums?

Yes (per IRS guidelines)

Employer determines if money can be used for COBRA or other premiums

No

No

No

Can the money be used for non-qualified or non-eligible health care expenses?

If employee is under age 65 the money is subject to income tax as well as any applicable penalty tax. At age 65 or older, employee can take penalty-free distributions from the HSA for any reason.

No

No

No

No

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