ANY OTHER
WAYS TO PAY
HEALTH REIMBURSEMENT ARRANGEMENT
HRA
Employer-funded group health plans from which employees are reimbursed tax-free for qualified medical expenses (limited to a fixed annual dollar amount). Any unused amounts may be rolled over to be used in subsequent years but are ultimately owned by the employer. May also be called a Health Reimbursement Account.
HEALTH SAVINGS ACCOUNT
HSA
A type of savings account that allows pre-tax dollars to be set aside to be used to pay for qualified medical expenses (deductibles, copayments, coinsurance, etc but may not be used to pay premiums). You can only use HSA funds if you have an HSA eligible plan.
SELF EMPLOYED
TAX GUIDE
Here’s a breakdown of the distinctions between HSA, FSA, and HRA plans, along with the tax advantages associated with each. This resource is particularly valuable for 1099 employees or self-employed individuals aiming to optimize their tax savings.