HSA, FSA, HRA & MSA
Most likely going to be tested on:
HSA – Health Savings Account
- A way to save money, before taxes, to help pay for medical costs. You MUST have a High Deductible Health Plan to qualify for an HSA. The money can roll over year to year.
- If you use HSA money for non-medical expenses, you will owe not only the taxes but a 20% penalty, unless you’re over 65/Medicare age, you only pay the tax not the penalty.
FSA – Flexible Spending Account
- Money an employee sets aside from their paycheck before being taxed for medical expenses.
- The money CANNOT roll over, use it or lose it.
- There are also Dependent Care accounts that the government puts limits on.
Not likely to be tested on:
Referenced in many books, but not usually tested on. (Some states DO test on these, see if they’re talked about in detail or just mentioned. If just mentioned, you can generally ignore them.)
HRA – Health Reimbursement Accounts
- Employers set aside money for their employees medical expenses.
- Almost NEVER tested on this, it’s merely referred to when talking about the other accounts.
MSA – Medical Savings Account
- These are set up by employers for their employees.
- Most states do not test on these.
Recommended: Gold
The GOLD Course is ALWAYS the recommended class series for all students as it teaches the material in more depth. Over 30 hours of the most in depth classes with a more intensive teaching of the topic. Learn more about L&H GOLD
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