Date: Thu, 26 Apr 2007 11:01:06 -0500
From: jIM 
Newsgroups: misc.invest.financial-plan
Subject: Re: debt free, maxed 401k, maxed IRA
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>
> >You are only allowed to use an HSA if you hve a High Deductible health
> >care plan.
>
> HRA, HSA, FSA... we need a scorecard to keep up.  I suspect Amy is
> talking about a flexible spending account (I call that "FSA") where
> participants contribute pre-tax and use money for qualified medical
> expenses during year.
>

HRA- Health care reimbursement account.  Unused portion rolls over to
next year.  Typically operated by employer (and in my case the only
one which can contribute to this is my employer).  Does NOT pay
interest (so money in account loses purchasing power).

HSA- Healthcare spending account.  Unused portion rolls over to next
year.  Typically opened by individual similar to an IRA (and
individual is contributing pre-tax dollars).  Limited number of HSA
providers, high fees, and transactions costs need review.  Some HSA's
operate like "cash accounts", some allow more sophisticated investment
plans (stocks, bonds other).

FSA- Flexible spending account.  Provided by employer to individual
similar to a 401k.  Money is contributed to plan pre-tax by
individual, and withdraw tax free for health care expenses.  Money is
put in current year, and must be taken out by April tax deadline of
subsequent year (for health care expenses incurred the prior year).
Leftover money is LOST at end of year loses not only purchasing power,
but the principal is gone too.