Personal Spending Accounts

Put more money in your workers' pockets with personal spending accounts

Personal spending accounts help your workers budget and save for everyday healthcare and dependent care costs — while delivering tax advantages for them and cost savings for your ministry. These accounts can also offset worker costs associated with lower-premium plans.

Health savings accounts. Paired with HSA-compatible health plans, HSAs let workers pay for qualified health expenses or save for the future. You can choose to contribute to your workers' HSAs to give them an added financial boost.

Health reimbursement accounts. Funded by you, HRAs help workers cover out-of-pocket medical, dental and vision expenses — a practical way to support your workers while keeping your health plan affordable.

Flexible spending accounts — Medical. Workers use these FSA funds to pay for qualified medical expenses. Funds are use-it-or-lose-it, so workers should plan to spend their balance before the end of the plan year.

Flexible spending accounts — Dependent care. This FSA covers eligible child and adult care costs, including daycare, nursery school and day camp.

When you offer PSAs to your workers, you:

Save money — Paired with a lower-cost medical plan, PSAs deliver tax advantages for both you and your workers. Payroll deduction contributions reduce FICA and income tax for most employers.

Protect your workers financially — Give workers greater peace of mind by helping them manage out-of-pocket costs.

Strengthen your benefits package — Well-rounded benefits support recruitment and retention.

Offer conveniences — Direct deposit, debit card access, online account management and automatic bill payment.

Watch on-demand webinar

This pre-recorded webinar provides an overview of Personal Spending Accounts (PSAs), explaining how they work, eligible expenses, account management, and key updates or benefits for participants.

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Talk to an Account Manager!

Check out these resources to learn more.

Employer Guide to Personal Spending Accounts

HealthEquity Service Fee Schedule

What's the difference between an HSA, HRA, and FSA?

Q	HSA	HRA	FSA
What is it?	An HSA is a tax-advantaged account used to pay qualified medical, prescription drug, dental and vision expenses for the account holder and dependents.	An HRA is a tax-advantaged account established and funded entirely by the employer for its workers’ and their dependents’ qualified health plan expenses.	An FSA is a tax-advantaged account usually offered as part of a Cafeteria Plan. Funds can be used toward qualified medical or dependent care expenses depending on the type of FSA.
What is eligible?	Medical expenses according to Internal Revenue Code Section 213(d).	Health plan eligible expenses (e.g., copays, deductibles, coinsurance), dental or vision expenses as directed by the employer.	Medical FSA: Medical expenses according to Internal Revenue Code Section 213(d). Dependent care FSA: Dependent care expenses according to Internal Revenue Code Section 129.
Who owns the account?	Worker.	Employer.	Employer.
CHP Option compatibility?	Can be used with any high-deductible Concordia Health Plan option (Healthy Me HSA A, Healthy Me HSA B, Healthy Me HSA C, Healthy Me HSA D, Whole Health HSA A and Whole Health HSA B).	Can be used with any health plan option.	Can be used with any health plan option but must be limited purpose if a high-deductible Concordia Health Plan option (Healthy Me HSA A, Healthy Me HSA B, Healthy Me HSA C, Healthy Me HSA D, Whole Health HSA A and Whole Health HSA B).
Who contributes?	Employer and/or worker. The account can be funded by the employer and the worker.	Employer only. The account is funded entirely by the employer.	Generally, worker. This account is typically funded by the worker, although the employer can contribute as well.
Balance rolls over?	Yes. The balance does roll over from year to year.	Employer decision. Money in the account at the end of the year can be rolled over if the employer designates.	No. If money isn’t used by the end of the year, the remaining dollars are forfeited to the employer, unless the employer elects to allow a rollover of up to an amount determined by the IRS.
Portable?	Yes. The account is fully portable if the worker leaves the organization.	Employer decision. Employer can allow terminated workers to spend remaining funds in the account.	No. The account is not portable if the worker leaves the organization.
Investment opportunities?	Yes. The account will earn interest, and at some HSA account administrators, workers can also invest balances over a certain threshold.	No.	No.
Who holds the funds until a claim is received?	The member in their account with the administrator (e.g., HealthEquity).	Employer.	Employer.