Yes Yes Yes Tax-free contributions Tax-free withdrawals for Pretax contributions Tax-free interest eligible expenses Tax-free withdrawals for Is it Tax-free withdrawals for eligible expenses eligible expenses Eligible: Eligible: Eligible: The HRA typically covers the same Out-of-pocket expenses until Out-of-pocket expenses until expenses that the health plan deductible is reached deductible is reached covers. Covered expenses may Copayments, coinsurance and Copayments, coinsurance and include: prescription drugs prescription drugs Medicare and COBRA Long-term care premiums In-network doctor visits premiums Dental and vison care Inpatient or outpatient Long-term care premiums expenses not covered by the hospital care Dental and vison care health plan Diagnostic exams expenses not covered by the Prescription medications health plan What expenses are Ineligible: Ineligible: Ineligible: covered? Expenses that aren’t related to Health insurance monthly Health insurance monthly medical treatment or care as premiums premiums defined by the IRS. Expenses that aren’t related to Expenses that aren’t related to medical treatment or care as medical treatment or care as defined by the IRS. defined by the IRS. Remember: HRA funds can only Remember: HRA funds can only Remember: HSA funds can only be used on health plan be used on health plan be used on the account holder and dependents. dependents. their tax dependents. It’s important to save all your receipts and explanation of benefits (EOB) statements to validate expenses, as required by the IRS. What about keeping receipts? An HSA account belongs to the Employers determine if remaining Employers determine if remaining What happens employee. Any funds remaining at funds will roll over to the following funds will roll over to the following to unused funds the end of the year roll over to the plan year and any limitations on the plan year and any limitations on the at the end of the next year. rollover amounts. rollover amounts. year?
Is it Yes Tax-free contributions Tax-free interest Tax-free withdrawals for eligible expenses Yes Tax-free withdrawals for eligible expenses Yes Pretax contributions Tax-free withdrawals for eligible expenses What expenses are covered? Eligible: Out-of-pocket expenses until deductible is reached Copayments, coinsurance and prescription drugs Medicare and COBRA premiums Long-term care premiums Dental and vison care expenses not covered by the health plan Ineligible: Health insurance monthly premiums Expenses that aren’t related to medical treatment or care as defined by the IRS. Remember: HSA funds can only be used on the account holder and their tax dependents. Eligible: The HRA typically covers the same expenses that the health plan covers. Covered expenses may include: In-network doctor visits Inpatient or outpatient hospital care Diagnostic exams Prescription medications Ineligible: Expenses that aren’t related to medical treatment or care as defined by the IRS. Remember: HRA funds can only be used on health plan dependents. Eligible: Out-of-pocket expenses until deductible is reached Copayments, coinsurance and prescription drugs Long-term care premiums Dental and vison care expenses not covered by the health plan Ineligible: Health insurance monthly premiums Expenses that aren’t related to medical treatment or care as defined by the IRS. Remember: HRA funds can only be used on health plan dependents. What about keeping receipts? It’s important to save all your receipts and explanation of benefits (EOB) statements to validate expenses, as required by the IRS. What happens to unused funds at the end of the year? An HSA account belongs to the employee. Any funds remaining at the end of the year roll over to the next year. Employers determine if remaining funds will roll over to the following plan year and any limitations on the rollover amounts. Employers determine if remaining funds will roll over to the following plan year and any limitations on the rollover amounts.
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