HSA vs. FSA vs. HRA
HSAs, FSAs, and HRAs are three tax-advantaged accounts that help pay for medical expenses, but they are owned, funded, and governed very differently. One belongs to you, one is set up by your employer but funded mostly from your paycheck, and one is funded entirely by your employer. This page lays out how each works in plain English so you can match the terms to your own benefits paperwork.
At a glance
| Health Savings Account HSA | Flexible Spending Account FSA | Health Reimbursement Arrangement HRA | |
|---|---|---|---|
| Who owns and funds it | You own it; you and/or your employer fund it | Employer sets it up; you fund it mostly through payroll | Employer owns and funds it |
| Requires a specific health plan | Yes, an HSA-qualified high-deductible plan | No | No, the employer decides how it pairs |
| Unused funds roll over each year | Yes, always | Limited, only up to any carryover or grace period offered | Employer's choice |
| Portable if you leave the job | Yes, it goes with you | No, generally forfeited | No, it stays with the employer |
| Contribution limit (2025) | $4,300 self-only / $8,550 family | $3,300 health FSA salary reduction | Set by employer; no IRS dollar cap |
How these three accounts really differ
The clearest divide is ownership. An HSA belongs to you, follows you between jobs, and its balance rolls over every year. An FSA is set up by your employer but funded mainly from your own paycheck, and an HRA is funded entirely by your employer with no employee contributions.
Eligibility and rollover rules split them further. Only an HSA requires you to be enrolled in a qualified high-deductible health plan, an FSA usually operates on a use-it-or-lose-it basis aside from a limited carryover or grace period, and an HRA follows whatever rollover and eligibility terms the employer writes into the plan.
Why portability matters
Because an HSA is yours, leaving a job does not cost you the balance, whereas FSA dollars are usually forfeited and HRA funds stay with the employer.
Account plan documents
Your account's plan documents state whether it is an HSA, FSA, or HRA and describe the rollover, eligibility, and reimbursement rules.
Employer's benefits summary
The benefits summary shows how much your employer contributes and whether the account is paired with a specific health plan.
IRS annual limits
The IRS publishes contribution and carryover figures each year for HSAs and FSAs, so confirm the current year's numbers before you make an election.
What it looks like on a real claim
Example 1 — Paying for a $1,200 dental crown
You use account funds for a qualified $1,200 dental expense.
You pay from your HSA tax-free, and any unused balance stays and rolls over.
You pay from your FSA tax-free, but you must use the funds within the plan year plus any carryover or grace period.
You submit the expense and your employer reimburses it under the HRA's rules, up to what they have funded.
Example 2 — Leaving your job in July with money left
You have $800 remaining in the account when you change employers mid-year.
The $800 goes with you because the account is yours.
You generally forfeit the $800 unless you elect COBRA continuation of the FSA.
The funds remain with the employer and do not follow you.
The bottom line
The simplest way to keep these accounts straight is to ask who owns the money and what happens to it at year-end and when you leave. An HSA is a portable, employee-owned account tied to a high-deductible plan, an FSA is an employer-established account you fund from pay with limited rollover, and an HRA is an employer-funded reimbursement arrangement on the employer's terms.
Because contribution limits and carryover rules change from year to year and vary by employer, the details in your own plan documents and the current IRS figures are what govern your account. Read those alongside your benefits summary before you decide how much to set aside.