HSA, FSA and HRA are tax-advantaged accounts that help you pay for healthcare expenses. Here's a quick breakdown of each:
An HSA, or Health Savings Account, lets you set aside pre-tax money to pay for qualified medical expenses. You own the account, the balance rolls over year to year, and it can even be invested for the future. To contribute to an HSA, you must be enrolled in a High-Deductible Health Plan (HDHP).
An FSA, or Flexible Spending Account, also lets you set aside pre-tax money for medical expenses, but it's set up through your employer. FSA funds typically need to be used within the plan year, though some employers offer a small rollover or grace period. You don't need to be on a specific plan type to use an FSA.
An HRA, or Health Reimbursement Arrangement, is funded entirely by your employer. You don't contribute to it yourself. Your employer sets the rules on what expenses it covers and how much is available each year.
Not sure which one is right for you? Nayya factors your health plan, expected medical expenses, and financial situation into your recommendations, so we'll help point you in the right direction.
Questions? Email support@nayya.com. We're available Monday through Friday, 9:00 am to 5:00 pm ET.
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