| Who is eligible? |
Any individual covered by a qualified high-deductible health plan |
All employees |
All employees, except those self-employed |
All employees as designated by employer |
| Who can contribute? |
Employer, individual or both |
Employer only |
Employer, individual or both |
Employer only |
| What are the funding options? |
Funded account with real dollars |
Typically paid as incurred |
Funded account with real dollars |
Typically paid as incurred |
| Does the balance carry over? |
Unused fund balance carries over to the next year |
Unused fund balance carries over to the next year — plan can define carry-over limit |
Use it or lose it arrangement – balance does not carry over |
Unused fund balance carries over to the next year |
| Are rollovers permitted? |
Rollovers are permitted from MSAs & HSAs |
Rollovers are not permitted to HSAs |
Rollovers are not permitted |
Rollovers are not permitted to HSAs, but are permitted from HRAs |
| Is the fund or account portable? |
Yes |
No, but may be allowed to roll over to RRA |
No |
No |
| Are there interest or investment earnings? |
Yes |
No |
No |
No |
| What are the tax advantages? |
Account earns tax-free interest
Employee contributions through a cafeteria plan are pre-tax
Other contributions are tax deductible
Employers with a cafeteria plan enjoy FICA tax savings
Qualified withdrawals are not taxed
Non-qualified withdrawals subject to income tax and 10 percent penalty |
Employers may deduct reimbursed employee medical expenses as a business expense
Reimbursements are excludable from the employee's gross income |
Employee contributions are made on a tax-free basis
Employers with a cafeteria plan enjoy FICA tax savings |
Employers may deduct reimbursed employee medical expenses as a business expense
Reimbursements are excludable from the employee's gross income |
