How do health accounts compare?

A summary of the main features of each type of health account, and how some accounts can work together.

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Health Savings Account
A personal savings account that helps you save for out-of-pocket medical expenses when you have a qualified high-deductible health plan.
You do. You can take it with you, even if you retire, change jobs or health plans.
A qualified High Deductible Health Plan (HDHP)
You and your employer
Typically changes annually.
Current IRS contribution limits here.
Funds are available as soon as contributions are deposited into your account throughout the year.
Yes, unused balances carry over. It’s yours to keep and you never lose it, even if you change jobs or stop working.
Yes, if the account balance exceeds $1,000. And money in your account earns interest tax-free.*
Yes, with an LPFSA and/or DCFSA.
Offers a triple tax advantage:
  1. Pre-tax contributions
  2. Potential for tax-free interest and investment earnings
  3. Tax-free withdrawals Tax-free withdrawals for qualified medical expenses.

* Some states do not allow pre-tax employer or employee contributions to certain health care accounts. Consult with your own attorney or tax advisor to understand the tax and legal consequences of a Health FSA and/or HRA plan account and how it could impact your particular situation.