HSA vs. FSA vs. HRA healthcare account comparison
Health Savings Accounts (HSAs), Healthcare Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs) each let members use tax-free dollars to pay for qualified medical expenses. But there are important differences.
Which one will benefit me the most?
Consider an HSA if you want to…
- Save a bunch of money on healthcare premiums
- Rollover your money and keep it year after year
- Maximize your tax savings
- Invest your dollars and grow your balance
- Build a healthcare nest egg for retirement
Consider an FSA if you want to…
- Get a smaller deductible
- Prioritize near-term healthcare expenses
- Manage significant prescription costs
Consider an HRA if you want to…
- Get free money from your organization
- No, really. Free money. Take it!
Side-by-side comparison
Health Savings Accounts (Health Savings Accounts), Healthcare Flexible Spending Accounts (Healthcare Flexible Spending Accounts), and Health Reimbursement Arrangements (Health Reimbursement Arrangements) each let members use tax-free dollars to pay for qualified medical expenses. But there are important differences.
| Feature | HSA | FSA | HRA |
|---|---|---|---|
| Who owns the account? | You own it | Your employer | Your employer |
| Portable—do you keep it if you leave? | Yes | No | No |
| Contributions are tax-deductible | Yes | Yes (pre-tax) | N/A (employer-funded) |
| Earnings grow tax-free | Yes | N/A | N/A |
| Withdrawals for qualified expenses are tax-free | Yes | Yes | Yes |
| Who can contribute? | You, your employer, or both | You (pre-tax payroll) | Employer only |
| Annual contribution limit (individual) | $4,300 | $3,300 | Set by employer |
| Annual contribution limit (family) | $8,550 | N/A | Set by employer |
| Funds roll over year to year | Yes—all of it | Limited ($640 max) or grace period | Varies by plan |
| Can invest funds | Yes | No | No |
| Must be enrolled in an HDHP | Yes | No | No |
| Available with any health plan | HDHP only | Most plans | Employer decides |
HSA
FSA
HRA
View all HSA limits and guidelines 6
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1HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules. Return to content
2Earnings on your HSA funds are tax-free if used for qualified medical expenses. Return to content
3For 2025, the IRS annual contribution limit for an individual with self-only coverage under an HDHP is $4,300. For family coverage, it’s $8,550. Return to content
4FSA annual contribution limits are set by the IRS. For 2025, the limit is $3,300. Return to content
5HRA contribution limits are determined by the employer and can vary by plan design. Return to content
6Investment options are available once your HSA reaches a minimum threshold balance. Investments are subject to risk, including the possible loss of principal. Return to content