Fund details
Comparing health expense funds, at a glance
|
|
HRA |
HSA |
FSA |
RRA |
|---|---|---|---|---|
|
Who is eligible? |
All employees, as designated by the employer |
Anyone covered by a qualified high-deductible plan |
All employees, as defined by the IRS |
All employees, as defined by the employer |
|
Who can contribute? |
Employer only |
Employer, employee, or both. |
Employer, employee, or both. |
Employer only |
|
Does the balance carry over? |
Yes - plan can define carry-over limit; HRA balance can carry over to RRA. |
Yes |
Yes, up to $500, or a grace period may apply (but not both). |
Yes |
|
Can rollover contributions from another account be made to this account? |
No |
Yes, rollover contributions from another HSA are permitted; one-time rollover from IRA also permitted. |
No |
Can roll over funds from HRA |
|
Is the fund or account portable? |
No |
Yes |
No |
No |
|
Are there interest or investment earnings? |
No |
Yes |
No |
No |
|
What are the tax advantages? |
Employers may deduct reimbursed employee medical expenses as a business expense; reimbursements may be excluded from the employee's gross income. |
Employers with a cafeteria plan enjoy FICA tax savings. |
Employers with a cafeteria plan enjoy FICA tax savings. |
Employers may deduct reimbursed employee medical expenses as a business expense; reimbursements may be excluded from the employee's gross income. |
|
Are the contributions taxable income to the employee? |
No
In addition, contributions are not subject to FICA or FUTA taxes. |
Contributions are tax advantaged, including not being subject to FICA or FUTA taxes. |
No
In addition, contributions are not subject to FICA or FUTA taxes.
|
No
In addition, contributions are not subject to FICA or FUTA taxes. |
|
Are the distributions / reimbursements taxable income to the employee? |
No |
No, if made for qualified medical expenses; otherwise subject to income tax and 20% penalty. |
No |
No |
Fund details |
Who is eligible? |
|---|---|
HRA |
All employees, as designated by the employer |
HSA |
Anyone covered by a qualified high-deductible plan |
FSA |
All employees, as defined by the IRS |
RRA |
All employees, as defined by the employer |
Fund details |
Who can contribute? |
HRA |
Employer only |
HSA |
Employer, employee, or both. |
FSA |
Employer, employee, or both. |
RRA |
Employer only |
Fund details |
Does the balance carry over? |
HRA |
Yes - plan can define carry-over limit; HRA balance can carry over to RRA. |
HSA |
Yes |
FSA |
Yes, up to $500, or a grace period may apply (but not both). |
RRA |
Yes |
Fund details |
Can rollover contributions from another account be made to this account? |
HRA |
No |
HSA |
Yes, rollover contributions from another HSA are permitted; one-time rollover from IRA also permitted. |
FSA |
No |
RRA |
Can roll over funds from HRA |
Fund details |
Is the fund or account portable? |
HRA |
No |
HSA |
Yes |
FSA |
No |
RRA |
No |
Fund details |
Are there interest or investment earnings? |
HRA |
No |
HSA |
Yes |
FSA |
No |
RRA |
No |
Fund details |
What are the tax advantages? |
HRA |
Employers may deduct reimbursed employee medical expenses as a business expense; reimbursements may be excluded from the employee's gross income. |
HSA |
Employers with a cafeteria plan enjoy FICA tax savings. |
FSA |
Employers with a cafeteria plan enjoy FICA tax savings. |
RRA |
Employers may deduct reimbursed employee medical expenses as a business expense; reimbursements may be excluded from the employee's gross income. |
Fund details |
Are the contributions taxable income to the employee? |
HRA |
No
In addition, contributions are not subject to FICA or FUTA taxes. |
HSA |
Contributions are tax advantaged, including not being subject to FICA or FUTA taxes. |
FSA |
No
In addition, contributions are not subject to FICA or FUTA taxes.
|
RRA |
No
In addition, contributions are not subject to FICA or FUTA taxes. |
Fund details |
Are the distributions / reimbursements taxable income to the employee? |
HRA |
No |
HSA |
No, if made for qualified medical expenses; otherwise subject to income tax and 20% penalty. |
FSA |
No |
RRA |
No |
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Legal notices
Aetna is the brand name used for products and services provided by one or more of the Aetna group of companies, including Aetna Life Insurance Company and its affiliates (Aetna).
Health benefits and health insurance plans contain exclusions and limitations.