4 ms·
Maybe you're talking about a different kind of account, but FSA dollars come out of the employee's own paycheck.
by cimmanom 8y ago
Maybe you're talking about a different kind of account, but FSA dollars come out of the employee's own paycheck.
- cosmie 8y agoSounds like they're referring to an HRA account[1][2]. It's a fully employer-funded, employer-owned, and employer-controlled reimbursement account. It's similar in function to an HSA account, but it doesn't actually belong to the employee and doesn't follow the employee when they're terminated. My employer offers both HRA and HSA based high deductible plans, as well as a PPO plan. The HRA plan is definitely the best plan on paper, especially since the unused HRA funds rollover[3], but a huge caveat being that you lose any HRA balance that you've accumulated over time if you ever leave or get terminated, since it doesn't actually belong to you. [1] https://www.investopedia.com/terms/h/hra.asp https://www.investopedia.com/terms/h/hra.asp [2] http://www.aetna.com/producer/aetnalink/2009-4q/natlink_hra_4q09.html http://www.aetna.com/producer/aetnalink/2009-4q/natlink_hra_... [3] Employers have significant leeway over how the HRA is structured, what it will cover, whether you have to use any FSA funds you have beforehand, whether unused balances will rollover or reset next year, etc. My employer happens to have a really good HRA structure, including rollover balances and using HRA funds before FSA funds.
- deleted 8y ago[deleted]
- jmalicki 8y agoFSA dollars come out of your own paycheck, but any unspent dollars revert to your employer when your employment terminates. On the other hand, if you save $2500/yr in your FSA, spend it in one month after only after a little over $200 has been deducted from your paycheck, then quit, you just got an extra $2300 out of your employer you didn't pay for, so it goes both ways.