What is the difference between an HSA, HRA, and FSA?

by | May 18, 2018 | Healthcare Reform

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FSA HRA HSA
Owner Employee Employer Employee
Funded By Employee Employer Employee, Employer, or Other
Used For Dependent Care expensesIRS-approved Health related expenses Employer-approved Healthcare expenses IRS-approved Healthcare expenses
Account Requirements N/A N/A Must be enrolled in qualified HDHP
Contribution Limits Dependent Care – $5,000Health FSA – $2,550 N/A Individual: $3,350 ($3,400 for 2017)Family: $6,750
Investment Option N/A N/A Yes, once the balance reaches the minimum threshold
Balance Rollover Some plans allow for Health FSA carryover of up to $500 Yes Yes
2020 HSA Contribution Limits

The Internal Revenue Service (IRS)  has released the 2020 inflation-adjusted amounts for Health Savings Accounts (HSAs). Contribution limits, minimum deductibles, and the maximum for out-of-pocket expenses all go up next calendar year.

2020 HSA Contribution Limits

Starting January 1, 2020, annual maximum contribution levels will rise for both individual and family coverage. Account holders with individual coverage will be able to contribute $3,550, a $50 increase from 2019. Those with family coverage may contribute up to $7,100, a $100 increase from 2019.

Minimum Deductible for HDHPs

The IRS also raised the minimum deductible for qualified high deductible health plans (HDHPs). In 2020, the individual coverage minimum deductible is $1,400, up $50; the family coverage minimum deductible goes up to $2,800, a $100 increase.

Maximum for Out-of-Pocket Expenses 

The maximum limit for out-of-pocket expenses is going up in 2020, as well. Those with individual coverage will have a $6,900 limit, a $150 increase. Account holders with family coverage see a $300 increase to $13,800.

Catch Up Contributions

The 2020 catch up contribution limit remains the same, at $1,000, for those 55 years of age and older.

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