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Comparison: HRA vs HSA vs FSA Comparison of an HRA, HSA and FSA   HRA HSA1 FSA2 Establishment of account Employer sponsored (HealthSecure HRA limited to public employers) Eligible individual Employer Integrated with employer-sponsored Section 125 plan Employer sponsored benefit program via Section 125 plan High Deductible Health Plan(HDHP) required No Yes No Eligibility Employee who meets employer's defined eligibility criteria Eligible employee/individual covered by HDHP and no other non-HDHP coverage Employee who meets employer's eligibility criteria FICA savings Yes Yes/No Yes Maximum contribution No maximum. Employer may impose a maximum, but there is no IRS limitation. Some limitations apply in the for-profit market. For 2010 Individual - $3050 Family - $6150 No maximum Employer may impose a maximum, but there is no IRS limitation. Some limitations apply in the for-profit market. Tax deductibility -- employee Contribution has no impact on current year earned income Employee contributions are pretax if offered through a Section 125 Plan or tax deductible (through IRS Form 1040) if contributions are made independent from employer Employee contributions are pretax Taxation of accumulated earnings Tax-free if assets are held in a tax-exempt trust Tax-free N/A Qualified retiree insurance premiums Retiree health insurance, including qualified LTC Limited None Nonmedical withdrawals Not allowed Yes, but will be included in gross income and subject to 10% excise tax, unless made after death, disability or age 65 Not allowed Carryover from year to year Yes Yes No Portable after termination Yes (if vested) Yes No #40253 Securities and investment advisory services are offered by VALIC Financial Advisors, Inc., member FINRA and an SEC-registered investment advisor.