HSA vs. HRA: Understanding the Differences and Benefits

When it comes to managing your healthcare expenses, two popular options are Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs). Understanding the differences between HSA and HRA can help you choose the best option for your needs.

HSAs and HRAs both offer tax advantages, but there are key distinctions between the two:

• HSAs are individual accounts that are owned by the employee, whereas HRAs are owned and funded by the employer.
• With an HSA, you can carry over any unused funds year after year, while HRAs are typically
  

  When managing healthcare expenses, understanding the differences between Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs) can make a big difference. HSAs are portable and personal accounts that belong to the employee, allowing them to have complete control over their funds, while HRAs are employer-owned accounts designed to reimburse employees for qualified medical expenses.