Patriot HR, Inc.
 
PO Box 20489
 
Canton, OH 44702
 
(877) 968-7147
 
Copyright © 2004

Comparison of Tax-Advantaged Health Savings Plans

  Health FSAs HSAs HRAs
Healthcare plan requirements None Must be paired with a High Deductible Health Plan with deductibles of at least $1,000 for single coverage, $2,000 for families None, but usually paired with a High Deductible Health Plan
Who contributes Usually the employee, but the employer may also contribute The employee and/or employer Employer only
Portability Can only be used by employees or by former employees who still retain their FSA through COBRA Funds are owned by the employee and therefore go with the employee from job to job and even into retirement. The employer determines if and how an employee can access his/her unused balance if the employee no longer works for the company.
Can amounts be carried over from year to year? No. Money contributed to an FSA must be used within the plan year or the employee loses it (employer has option of extending that deadline by 2 ½ months). Yes Yes
Contribution limits No legal limits, but the employer may enforce its own limit 100% of the deductible, not to exceed $2,650 for individuals or $5,250 for families. So if an individual has a deductible of $1,000, that is his or her contribution limit. If the deductible is $3,000, the limit would be $2,650 No legal limits, but employer may enforce its own limit