Tax-advantaged accounts help individuals and employers save on healthcare and dependent care costs by reducing taxable income. This category includes FSAs, HSAs, HRAs, and Premium Only Plans (POPs)—each with its own rules, benefits, and use cases. Learn how these tools work, who qualifies, and how to use them effectively to get the most value.
Tax-Advantaged Account Topics
POPs – Premium Only Plans
Premium Only Plans (POPs) are simple Section 125 plans that allow employees to pay their share of health insurance premiums with pre-tax dollars. These FAQs explain how POPs work, who can participate, and what employers need to do to stay compliant with IRS rules.
FSAs – Flexible Spending Accounts
Flexible Spending Accounts (FSAs) let employees set aside pre-tax dollars to pay for eligible healthcare or dependent care expenses. Explore these FAQs to better understand how FSAs work, what expenses are covered, how much you can contribute, and how to avoid common pitfalls like forfeiting unused funds.
DCAs – Dependent Care Accounts
Dependent Care Accounts (DCAs), a type of FSA, allow employees to set aside pre-tax dollars to pay for eligible child care or dependent care expenses. These FAQs cover contribution limits, qualifying dependents, eligible expenses, and coordination with other tax benefits like the Child and Dependent Care Tax Credit.
HSAs – Health Savings Accounts
Health Savings Accounts (HSAs) are powerful, tax-advantaged tools for covering medical expenses and building long-term savings. Browse these FAQs to learn who qualifies, how much you can contribute, what expenses are eligible, and how HSAs compare to other benefit options.
HRAs – Health Reimbursement Arrangements
Health Reimbursement Arrangements (HRAs) are employer-funded accounts that reimburse employees for eligible healthcare expenses. Explore these FAQs to learn how HRAs work, what expenses can be reimbursed, how they differ from FSAs and HSAs, and how plan design affects flexibility and rollover options.
MERPs – Medical Expense Reimbursement Plans
Medical Expense Reimbursement Plans (MERPs) are a type of Health Reimbursement Arrangement (HRA) that allow employers to self-fund a portion of employees’ out-of-pocket medical costs—often to offset high deductibles. These FAQs explain how MERPs work, when to use them, and how they can be paired with traditional or high-deductible group health plans.
MPRAs – Medicare Premium Reimbursement Arrangements
Medicare Premium Reimbursement Arrangements (MPRAs) allow employers to reimburse Medicare-eligible employees for some or all of their Medicare premiums and, in some cases, other out-of-pocket medical costs. These FAQs explore which employers can offer MPRAs, how they coordinate with group plans, and compliance considerations under IRS and DOL rules.
ICHRAs – Individual Coverage HRAs
Individual Coverage Health Reimbursement Arrangements (ICHRAs) allow employers to reimburse employees for individual health insurance premiums and eligible medical expenses instead of offering a traditional group plan. These FAQs explain how ICHRAs work, who can participate, what coverage qualifies, and how to handle employer classes and minimum reimbursement rules.
QSEHRAs – Qualified Small Employer HRAs
Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) are a type of HRA available to small employers who don’t offer a group health plan. These FAQs explain QSEHRA contribution limits, qualifying expenses, employee eligibility rules, and how QSEHRAs coordinate with premium tax credits on the Marketplace.