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How do health and benefit accounts compare?

A summary of the main features of each type of account, and how some accounts can work together. Print this health and benefit account comparison chart here.

Health Savings Account (HSA)
What is the maximum contribution limit? Typically changes annually.
Current IRS contribution limits here.
How does this account work? A personal savings account that helps you save for out-of-pocket medical expenses when you have a qualified high-deductible health plan (HDHP).
Who owns the account? You do. You can take it with you, even if you retire, change jobs or health plans.
Is a certain type of health plan required with this account? A qualified HDHP.
Who can contribute? You and your employer.
When is the money in this account available for use? Funds are available as soon as contributions are deposited into your account throughout the year.
Do unused funds in this account carryover to the next year? Yes, unused funds carryover. Money in your HSA is yours to keep and you never lose it, even if you change jobs or stop working.
Can funds in this account be invested/earn interest? Yes, with an HSA you have the potential for federal tax-free investment earnings.1
Can this account be combined with another health and benefit account? Yes, with an LPFSA, DCFSA, Commuter account or LSA.
What are the tax advantages?1 Offers the potential for triple tax advantages:2
  1. Pre-tax contributions.
  2. Potential for tax-free interest and investment earnings.
  3. Tax-free withdrawals for qualified medical expenses.
Health Flexible Spending Account (FSA)
What is the maximum contribution limit? Based upon employer plan rules, but typically up to $3,050 in 2023.
How does this account work? Allows you to set aside pre-tax dollars to help pay for qualified medical expenses that occur during a 12-month period.
Who owns the account? Your employer.
Is a certain type of health plan required with this account? No health plan required.
Who can contribute? You and your employer.
When is the money in this account available for use? The full contribution amount is available on the first day of coverage in your plan year.
Do unused funds in this account carryover to the next year? If your employer allows, up to $570 for 2022 and $610 for 2023.
Can funds in this account be invested/earn interest? No.
Can this account be combined with another health and benefit account? Yes, with a DCFSA, HRA, Commuter account or LSA.
What are the tax advantages?1 Contributions you make to your account that are used to pay for qualified medical, dental and vision expenses are tax free.
Limited Purpose FSA (LPFSA)
What is the maximum contribution limit? Based upon employer plan rules, but typically up to $3,050 in 2023.
How does this account work? Like an FSA, but typically offered in combination with an HSA. Can only be used for qualified dental and vision expenses.
Who owns the account? Your employer.
Is a certain type of health plan required with this account? Typically used in combination with an HSA and HDHP.
Who can contribute? You and your employer.
When is the money in this account available for use? The full contribution amount is available on the first day of coverage in your plan year.
Do unused funds in this account carryover to the next year? If your employer allows, up to $570 for 2022 and $610 for 2023.
Can funds in this account be invested/earn interest? No.
Can this account be combined with another health and benefit account? Yes, with an HSA, DCFSA, HRA, Commuter account or LSA.
What are the tax advantages?1 Contributions you make to your account that are used to pay for qualified dental and vision expenses are tax free.
Dependent Care FSA (DCFSA)
What is the maximum contribution limit? Based on employer plan rules and income limitations, but typically up to $5,000.
How does this account work? A reimbursement account that uses pre-tax dollars for dependent care expenses including daycare, after-school care and adult care.
Who owns the account? Your employer.
Is a certain type of health plan required with this account? No health plan required.
Who can contribute? You and your employer.
When is the money in this account available for use? Funds are available as soon as contributions are deposited into your account throughout the year.
Do unused funds in this account carryover to the next year? No, funds must be used during the plan year.
Can funds in this account be invested/earn interest? No.
Can this account be combined with another health and benefit account? Yes, with an HSA, Health FSA, LPFSA, HRA, Commuter account or LSA.
What are the tax advantages?1 Contributions you make to your account that are used to pay for qualified dependent care or adult care expenses are tax free.
Health Reimbursement Arrangement (HRA)
What is the maximum contribution limit? Although there is no set limit, it’s subject to anti-discrimination rules.
How does this account work? An employer-funded account that helps you pay for qualified medical expenses not covered by your health plan.
Who owns the account? Your employer.
Is a certain type of health plan required with this account? Check health plan requirements with your employer.
Who can contribute? Employer only.
When is the money in this account available for use? Funds are available as soon as contributions are deposited into your account throughout the year.
Do unused funds in this account carryover to the next year? Yes, refer to your employer for specific details.
Can funds in this account be invested/earn interest? No.
Can this account be combined with another health and benefit account? Yes, with a Health FSA, DCFSA, Commuter account or LSA.
What are the tax advantages?1 Reimbursements for qualified health expenses are tax free.
Commuter Benefits
What is the maximum contribution limit? Typically changes annually. Current IRS contribution limit is $300 monthly per account for each transit and/or parking account.
How does this account work? Allows you to set aside pre‑tax dollars from your paycheck to pay for qualified commuting expenses, such as a monthly train pass and parking at the station.
Who owns the account? Your employer.
Is a certain type of health plan required with this account? No health plan required.
Who can contribute? You can contribute to this account.
When is the money in this account available for use? Funds are available as soon as contributions are deposited into your account throughout the year.
Do unused funds in this account carryover to the next year? Yes, refer to your employer for specific details.
Can funds in this account be invested/earn interest? No.
Can this account be combined with another health and benefit account? Yes, with an HSA, Health FSA, LPFSA, DCFSA, HRA or LSA.
What are the tax advantages?1 Contributions deducted from your payroll on a pre-tax basis are not subject to income tax withholding, or payroll taxes such as Social Security and Medicare (FICA).
Lifestyle Spending Account (LSA)
What is the maximum contribution limit? Based on employer plan rules, your employer will deposit funds into your LSA.
How does this account work? An employer-funded account that helps support your overall health and well-being. Your employer adds funds to your account and you can use that money to pay for eligible products and services related to physical, financial and emotional wellness.
Who owns the account? Your employer.
Is a certain type of health plan required with this account? No health plan required.
Who can contribute? Employer only.
When is the money in this account available for use? Funds are available as soon as contributions are deposited into your account throughout the year.
Do unused funds in this account carryover to the next year? Refer to your employer for specific details.
Can funds in this account be invested/earn interest? No.
Can this account be combined with another health and benefit account? Yes, with an HSA, Health FSA, LPFSA, DCFSA, HRA or Commuter account.
What are the tax advantages?1 None.

1 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.

2 Potential Tax Advantages: You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA. If you receive distributions for other reasons, the amount you withdraw will be subject to income tax and may be subject to an additional 20% tax, unless an exception applies. Any interest or earnings on the assets in the account are tax-free. You may be able to claim a taxdeduction for contributions you, or someone other than your employer, make to your HSA directly (not through payroll deductions). In addition, HSA contributions may reduce your state income taxes in certain states. Certain limits may apply to employees who are considered highly compensated key employees. Bank of America recommends you contact qualified tax or legal counsel before establishing an HSA.