Accounts

Tax Advantaged Health Savings and Spending Accounts:

Flexible Spending Accounts (FSAs):  pre tax accounts where unspent balances may not be rolled over, other than for a 2.5 month grace period after each plan year. Often offered as separate component of cafeteria plans. Created in 1978.    

Health Reimbursement Arrangements (HRAs): employer funded pre-tax accounts where unspent balances may roll over from year to year. No employee portability. Typically offered in combination with high deductible plans. Created in 2002.

Health Savings Accounts (HSAs): pre tax savings accounts funded by employer or employee that must be offered in combination with high deductible plans. Provides for employee portability and investment of account funds. Qualifying one time transfers from HRAs and FSAs allowed from until 2012. Effective in 2004.

Medical Savings Accounts (MSAs): pre tax savings accounts with many various qualifying provisions that limited growth of accounts. Created in 1996.  No new accounts may be opened after 2007.