Side-by-Side Comparison Chart

	Flexible Spending Account (FSA)	Health Reimbursement Arrangement (HRA)	Health Savings Account (HSA)
Overview	Employer-sponsored benefit that allows employees to set aside pre-tax dollars through salary reduction for reimbursement of qualified medical expenses.	An employer funded benefit plan that reimburses employees for qualified medical expenses	A tax-exempt account established to pay for qualified medical expenses in conjunction with a high deductible health plan.
Eligibility
Self Employed	No, but spouse who works in business could enroll	No, but spouse who works in business could enroll	Yes
S-Corp Owners	No	No	Yes
C-Corp Owners	Yes	Yes	Yes
Funding through Salary Reduction	Yes	No for HRA, but yes for high-deductible plan	Yes for both the HSA and high-deductible plan. HSA may also be funded with after-tax dollars and deducted on income tax.
Funding through Employer Contributions	Optional, normally funded through employee salary reduction	Yes	Optional
Plan Document	Yes	Yes	No
Summary Plan Description	Yes	Yes	Yes
Specific Insurance Policy Required	No	No	Yes
Full Annual Contribution Always Available?	Yes	No	No
Employee Tax Savings	Tax-free contributions	Tax-free reimbursements	Tax-free contributions
Employer Tax Savings	7.65 FICA reduction for employee contributions	Reimbursement of claims deductible as business expense	7.65 FICA reduction for employee contributions
Year-to-Year Rollover	No	Yes	Yes
Claims Substantiation	Yes	Yes	Only if audited
Debit Card Use	Yes	Yes	Yes
Account Ownership	Employer	Employer	Employee
Funding	Employee and Employer funds place in IRA-like account owned by employee	General Employer Assets	General Employer Assets
Cash-Out of Unused Amounts	No	No	Yes, but subject to penalty and tax
Claims Limited to Current Year	Yes, unused balances forfeited	No, may be reimbursed in subsequent year if employee is still a participant	No, but expense must be incurred after HSA is established
COBRA Applies	Yes	Yes	No
Annual Form 5500	Yes, if over 100 participants	Yes if over 100 participants	No
12-Month Commitment	Yes	No	Yes. If funded through Pre-Tax FSA