it's important to consider the differences between these plans when deciding which ones to offer as part of your benefits package.
|Health Flexible Spending Account (FSA)||Health Savings Account(HSA)||Health Reimbursement Arrangement (HRA)|
|Contributions made by||Employee and/or employer||Employee, other individuals and/or employer||Employer only|
|Tax benefits||Pretax contributions; tax-free withdrawals for qualified expenses [no provision for non-qualified withdrawals]||Pretax contributions; tax-free withdrawals for qualified expenses; tax-deferred earnings||Pretax contributions; tax-free withdrawals for qualified expenses
[no provision for non-qualified withdrawals]
|Contribution limits||A $2,500 cap effective 2013; currently employers set the limit||Yes, $3,050 individual or $6,150 family (2011)||None required today, but contributions are set by employer|
|Withdrawals for non-medical expenses||Not allowed||Allowed, but taxed 20% effective 2011||Not allowed|
|Claim receipts must be submitted||Yes||No - but employee should keep receipts in case of an IRS audit||Yes|
|Unused balance||Money is forfeited||Money is carried forward and accumulates||Money may be carried forward and accumulates|
|If employee leaves the company||Money is forfeited||Money stays with the employee||Money is returned to the employer|
The Vantage Benefits Card can be used with any of the above consumer-directed health care plans, and can accommodate plan stacking rules to access several CDHC accounts from one card.
Call 800-337-8005 to learn more about how Vantage's benefit solutions can help your business.