HRA vs HSA vs FSA
Several acronyms, a few letters apart, behaving almost nothing alike. The differences that matter most are simple: whose money is it, and what happens to it at the end of the year.
You don’t pick your account — your medical plan picks it for you
This is the single most important thing on the page. The HRA and the HSA are not options you elect separately, and they do not overlap.
- PPO $4000 or HMO $4000
- HRA + you may elect an FSA and a DCA
- PPO Saver
- HSA + you may elect an LPFSA and a DCA
There is no HRA on the PPO Saver, and no HSA contribution on the PPO $4000 or HMO $4000. Note the other difference too: on the PPO Saver you can elect a Limited Purpose FSA but not a general-purpose FSA. Because your medical election generally can’t be reversed mid-year, choosing a plan while expecting the wrong account is a mistake you have to live with for twelve months.
Real money, two different ways
HRA — on the PPO $4000 and HMO $4000
Apex funds 50% of your deductible. You don’t contribute to it and you don’t manage it — it’s there to absorb half the deductible before your own money is at risk.
- Individual deductible $4,000
- Apex funds $2,000
- Family deductible $8,000
- Apex funds $4,000
HSA — on the PPO Saver only
Apex contributes every paycheck, and the account is yours — your name, your money, yours to keep if you leave.
- Employee only
- $30.77 per paycheck
- All other tiers
- $61.54 per paycheck
- Annual total, employee only
- $800
- Annual total, other tiers
- $1,600
Across 26 pay periods. Because the money arrives gradually, your balance early in the plan year is small — worth knowing if a large expense lands in January.
How the three accounts differ
| HRAHealth Reimbursement Arrangement | HSAHealth Savings Account | FSAHealth Flexible Spending Account | LPFSALimited Purpose FSA | |
|---|---|---|---|---|
| At Apex | ||||
| Available with | PPO $4000 and HMO $4000Automatic — you are enrolled | PPO Saver onlyAutomatic — you are set up with one | PPO $4000 and HMO $4000Not available on the PPO Saver | PPO Saver onlyCovers dental and vision expenses |
| Apex contributes | $2,000 / $4,00050% of your deductible | $800 / $1,600$30.77 or $61.54 per paycheck | Nothing | Nothing |
| Whose money is it | ||||
| Who owns the account | Apex | You | Apex sponsors it | Apex sponsors it |
| Who can put money in | Employer only | You and your employerAnyone can contribute on your behalf | You, pre-tax through payroll | You, pre-tax through payroll |
| If you leave Apex | Funds stay behindApex’s plan document governs | The money goes with you | Generally forfeited | Generally forfeited |
| End of the year | ||||
| Unused funds | Per Apex’s plan termsSee the HRA page | Roll over in full, every yearNo limit, and the account is yours for life | Rollover includedUp to the annual IRS carryover limit | Rollover includedUp to the annual IRS carryover limit |
| Can it be invested? | No | Yes, once you reach the thresholdConfirm with the account administrator | No | No |
| Limits and rules | ||||
| Annual contribution limit | No IRS limit | Set at the annual IRS limitEmployer and employee money share one limit | Set at the annual IRS limit | Set at the annual IRS limit |
| What it can pay for | Eligible medical expenses | Eligible medical expensesIncluding dental and vision | Medical, dental and vision expenses | Dental and vision onlyThis restriction is what protects your HSA eligibility |
| Requires a specific plan type | Must be integrated with a group health plan | Requires a qualifying high-deductible planThe PPO Saver is Apex’s HSA-qualified plan | Offered alongside group health coverage | Paired with an HSA-qualified plan |
| Covers spouse and dependents | Yes, if the plan is designed that way | Yes | Yes | Yes |
The short version
The HRA is Apex’s money covering half your deductible on the PPO $4000 or HMO $4000. The HSA is your money, in your name, that grows and follows you for life — with Apex adding to it each paycheck on the PPO Saver. An FSA or LPFSA is your own pre-tax money for the year, with rollover included. A DCA is separate again, covering childcare and eldercare rather than health costs.
Dependent Care FSA (DCA)
Available on every medical plan, and unaffected by the HRA and HSA rules — it is not health coverage, so it never interferes with HSA eligibility.
Your own pre-tax money set aside for dependent care: day care, preschool, before and after-school care, day camp, and eldercare for a dependent adult.
The DCA has its own IRS annual limit, separate from the health FSA limit. It is not medical — you cannot use it for doctor visits or prescriptions.
Rollover is included
Apex’s FSA and LPFSA both include rollover, up to the annual IRS carryover limit. Unused money up to that limit carries into the next plan year rather than being forfeited.
That materially lowers the risk of electing an FSA — the traditional “use it or lose it” worry applies only to amounts above the carryover limit.
The carryover limit is set by the IRS and changes from year to year. Check the current figure before deciding how much to elect.
How Apex handles the FSA and HSA rules
Why the PPO Saver offers a Limited Purpose FSA instead of a regular one
To contribute to an HSA, the IRS requires that you have no other health coverage paying benefits before your deductible is met. A general-purpose Health FSA is exactly that kind of coverage — having one would disqualify you from the HSA, and from Apex’s $800 or $1,600.
A Limited Purpose FSA solves it. Because it only reimburses dental and vision expenses, it doesn’t touch your medical deductible, so your HSA eligibility stays intact.
Apex’s plans are built around this, so you don’t have to work it out yourself: on the PPO Saver you are offered the LPFSA and not the general FSA. The conflict is designed out rather than left for you to trip over.
Switching to the PPO Saver with FSA money left over
If you are enrolling in the PPO Saver for the first time and you have rollover dollars sitting in a general-purpose FSA, those funds don’t block your HSA and they aren’t lost.
Your rollover balance is moved into a Limited Purpose FSA. That keeps the money available to you — for dental and vision — while preserving your eligibility to contribute to the HSA.
You don’t need to request this. It is how the transition is handled.
Apex’s HSA money counts against your own limit
The IRS annual HSA maximum applies to everything that goes into the account, from every source. Apex’s $800 or $1,600 is included.
If you want to contribute the maximum, subtract Apex’s contribution first — otherwise you can over-contribute without realizing it, which carries a penalty.
Apex sets contribution limits at the IRS maximum
You can contribute up to the full annual IRS limit — Apex does not impose a lower cap. Rollover on the FSA and LPFSA follows the IRS carryover limit.
These figures are reset by the IRS annually and change each January 1 with the plan year.
| Account | Most you can contribute | Rollover into next year |
|---|---|---|
| Health FSAPPO $4000 and HMO $4000 | $3,4002026 limit; 2027 pending IRS | $6802026 limit; 2027 pending IRS |
| Limited Purpose FSAPPO Saver | $3,400Same limit as the health FSA | $680 |
| Dependent Care FSAEvery plan | $7,500Married filing jointly, or single | No rollover |
| Dependent Care FSA — married filing separately | $3,750 | No rollover |
| HSA — self-only coveragePPO Saver | $4,500Includes Apex’s contribution | Everything rolls over |
| HSA — family coveragePPO Saver | $9,000Includes Apex’s contribution | Everything rolls over |
How much of the HSA limit is left for you
The IRS maximum covers everything that goes into the account, including Apex’s contribution. The amount you can elect is the limit minus what Apex puts in:
- Self-only · $4,500 limit less Apex’s $800
- $3,700 available to you
- Family · $9,000 limit less Apex’s $1,600
- $7,400 available to you
Electing the full limit on top of Apex’s contribution would be an excess contribution, which the IRS penalizes. If you are 55 or older by the end of the tax year you may add a catch-up contribution above these amounts.
FSA and HSA limits now run on the same clock
FSA and LPFSA limits follow the plan year, which now runs January 1 to December 31, 2027.
HSA and Dependent Care limits are set by calendar year, so with a calendar plan year every limit changes on the same day: January 1.
The IRS releases the health FSA limit each fall. Check the final 2027 figure before electing, or ask Apex.
Compare the medical plans
The account is one part of the decision. Deductible timing and prescription coverage usually matter more.
Your account pages
Apex’s specific terms, claims instructions, deadlines and administrator details.
Talk it through
Book a 30-minute session to walk through your own situation before you elect.