United Value HSA or HRA? - Understanding the Best Health Savings Option for You

When it comes to choosing between a United Value HSA (Health Savings Account) and an HRA (Health Reimbursement Arrangement), it's important to understand the differences and benefits of each option.

Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs) are both types of accounts that can help you save for medical expenses, but they have some key differences that may impact which one is the best choice for you.

United Value HSA:

An HSA is a tax-advantaged savings account that you can use to pay for qualified medical expenses.

• Contributions to an HSA are tax-deductible.
• Withdrawals for qualified medical expenses are tax-free.
• Unused funds can be rolled over year after year.

HRA:

An HRA is an employer-funded account that reimburses you for eligible medical expenses.

• Employer contributions are tax-deductible for the employer and tax-free for the employee.
• Unused funds typically do not roll over from year to year.

When deciding between a United Value HSA and HRA, consider factors like your medical expenses, employer contributions, and long-term savings goals.

Choosing the right account for your healthcare needs can be a daunting task, but understanding the United Value HSA and HRA is the first step towards making a well-informed decision.