Coverage Comparison

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

HSA vs. FSA vs. HRA — 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.

Where to find it in your policy

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.

Health Savings Account

You pay from your HSA tax-free, and any unused balance stays and rolls over.

Flexible Spending Account

You pay from your FSA tax-free, but you must use the funds within the plan year plus any carryover or grace period.

Health Reimbursement Arrangement

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.

Health Savings Account

The $800 goes with you because the account is yours.

Flexible Spending Account

You generally forfeit the $800 unless you elect COBRA continuation of the FSA.

Health Reimbursement Arrangement

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.

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