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    • Compare health expense funds

    Comparing health expense funds, at a glance

    Fund details

    HRA

    HSA

    FSA

    RRA

    Who is eligible?

    All employees, as designated by the employer

    Anyone covered by a qualified high-deductible plan

    All employees, as defined by the IRS

    All employees, as defined by the employer

    Who can contribute?

    Employer only

    Employer, employee, or both.

    Employer, employee, or both.

    Employer only

    Does the balance carry over?

    Yes - plan can define carry-over limit; HRA balance can carry over to RRA.

    Yes

    Yes, up to $500, or a grace period may apply (but not both).

    Yes

    Can rollover contributions from another account be made to this account?

    No

    Yes, rollover contributions from another HSA are permitted; one-time rollover from IRA also permitted.

    No

    Can roll over funds from HRA

    Is the fund or account portable?

    No

    Yes

    No

    No

    Are there interest or investment earnings?

    No

    Yes

    No

    No

    What are the tax advantages?

    Employers may deduct reimbursed employee medical expenses as a business expense; reimbursements may be excluded from the employee's gross income.

    Employers with a cafeteria plan enjoy FICA tax savings.

    Employers with a cafeteria plan enjoy FICA tax savings.

    Employers may deduct reimbursed employee medical expenses as a business expense; reimbursements may be excluded from the employee's gross income.

    Are the contributions taxable income to the employee?

    No

     

    In addition, contributions are not subject to FICA or FUTA taxes.

    Contributions are tax advantaged, including not being subject to FICA or FUTA taxes.

    No

     

    In addition, contributions are not subject to FICA or FUTA taxes.

     

    No

     

    In addition, contributions are not subject to FICA or FUTA taxes.

    Are the distributions / reimbursements taxable income to the employee?

    No

    No, if made for qualified medical expenses; otherwise subject to income tax and 20% penalty.

    No

    No

    Fund details

    Who is eligible?

    HRA

    All employees, as designated by the employer

    HSA

    Anyone covered by a qualified high-deductible plan

    FSA

    All employees, as defined by the IRS

    RRA

    All employees, as defined by the employer

    Fund details

    Who can contribute?

    HRA

    Employer only

    HSA

    Employer, employee, or both.

    FSA

    Employer, employee, or both.

    RRA

    Employer only

    Fund details

    Does the balance carry over?

    HRA

    Yes - plan can define carry-over limit; HRA balance can carry over to RRA.

    HSA

    Yes

    FSA

    Yes, up to $500, or a grace period may apply (but not both).

    RRA

    Yes

    Fund details

    Can rollover contributions from another account be made to this account?

    HRA

    No

    HSA

    Yes, rollover contributions from another HSA are permitted; one-time rollover from IRA also permitted.

    FSA

    No

    RRA

    Can roll over funds from HRA

    Fund details

    Is the fund or account portable?

    HRA

    No

    HSA

    Yes

    FSA

    No

    RRA

    No

    Fund details

    Are there interest or investment earnings?

    HRA

    No

    HSA

    Yes

    FSA

    No

    RRA

    No

    Fund details

    What are the tax advantages?

    HRA

    Employers may deduct reimbursed employee medical expenses as a business expense; reimbursements may be excluded from the employee's gross income.

    HSA

    Employers with a cafeteria plan enjoy FICA tax savings.

    FSA

    Employers with a cafeteria plan enjoy FICA tax savings.

    RRA

    Employers may deduct reimbursed employee medical expenses as a business expense; reimbursements may be excluded from the employee's gross income.

    Fund details

    Are the contributions taxable income to the employee?

    HRA

    No

     

    In addition, contributions are not subject to FICA or FUTA taxes.

    HSA

    Contributions are tax advantaged, including not being subject to FICA or FUTA taxes.

    FSA

    No

     

    In addition, contributions are not subject to FICA or FUTA taxes.

     

    RRA

    No

     

    In addition, contributions are not subject to FICA or FUTA taxes.

    Fund details

    Are the distributions / reimbursements taxable income to the employee?

    HRA

    No

    HSA

    No, if made for qualified medical expenses; otherwise subject to income tax and 20% penalty.

    FSA

    No

    RRA

    No

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    Legal notices

    Aetna is the brand name used for products and services provided by one or more of the Aetna group of companies, including Aetna Life Insurance Company and its affiliates (Aetna).

    Health benefits and health insurance plans contain exclusions and limitations.