HSA Comparison Chart

What is the best plan for you?

With healthcare costs rising at an alarming rate, employers and employees are looking to consumer-driven health plans - such as Health Reimbursement Arrangements (HRA), Medical Savings Accounts (MSA), Flexible Spending Accounts (FSA), and Health Savings Accounts (HSA) - for relief.

Frankly, the choices can be confusing. This chart will shed light on the different aspects of each plan and help you find the right one for your unique situation.

Question	HSA	MSA	HRA	FSA
Who owns the money in the account?	Individual	Individual	Employer	Individual (subject to "use it or lose it" rule at end of plan year)
Can the money be invested with interest earned?	YES, tax-free	YES, tax-free.	NO	NO
How is the account funded?	.Deposited directly into the account.	Deposited directly into the account.	As an "IOU" by an employer to pay employee expenses.	Deposited directly into the account.
Is the fund portable?	YES	YES	NO	NO
Are the funds taxable?	Contributions are 100% tax deductible. Funds spent on medical expenses are tax-free for life. At 65, funds used to supplement income are tax-deferred.	Contributions are 100% tax deductible. Funds spent on medical expenses are tax-free for life. At 65, funds used to supplement income are tax-deferred.	Funds used to pay for medical expenses are not reported as income.	Contributions are 100% tax deductible.
Can the funds be used for non-medical expenses?	YES, but they are subject to taxes and a 10% penalty.	YES, but they are subject to taxes and a 15% penalty.	NO	NO
How can an employee access funds?	Employee has direct access to funds with credit card, debit card, checks, or withdrawal form.	Employee has direct access to funds with debit card, checks, or withdrawal form.	Employee provides receipt for services.	Employee provides receipt for services.
Who can contribute to the account?	Both employers and individuals.	Employers or individuals, but not both.	Employer only.	Both employees and employers.
What type of health plan is required?	One with a high deductible.	One with a high deductible.	No requirements.	No requirements.
Who is eligible?	Any employers or individuals under 65 who have a qualified High-Deductible Health Plan (HDHP).	Self-employed and small employers (50 or less).	Current and former employees. No restrictions on group size.	An employee who satisfies the eligibility requirements established by the employer.
Can the plan be included in a cafeteria plan?	YES	NO	NO	YES
Is there a "catch up" provision for older individuals?	Yes, as of 2009, individuals 55 and older may make catch-up contributions of up to $1,000 per year.	NO	NO	NO
Is there a maximum contribution per year?	Not to exceed IRS-determined maximums. Pro-rated by the effective date of health plan.	65% of the annual deductible for individuals and 75% for families. Pro-rated by the effective date of the health plan.	NO. It is an arrangement by the employer to pay for medical expenses.	NO