Which health account typically rolls over year to year and is owned by the employee?

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Multiple Choice

Which health account typically rolls over year to year and is owned by the employee?

The key idea here is portability and ongoing accumulation of funds in a medical account. A Health Savings Account is owned by the individual, not an employer, and the money in it—including contributions and earnings—stays with the person from year to year. That means unused funds don’t vanish at year end; they roll over and can grow over time, which allows the balance to build up if you don’t need to use it right away. The account is typically paired with a high-deductible health plan, and withdrawals for qualified medical expenses are tax-advantaged. You can take the HSA with you if you change employers or retire, which is another aspect of its portability. In contrast, Flexible Spending Accounts are generally employer-owned and designed for use within a plan year, with only limited rollover allowed in some cases. Healthcare Reimbursement Accounts are funded and owned by the employer, so funds aren’t portable to the employee. An Exclusive Provider Organization is a type of health insurance plan, not a spending account, so it doesn’t feature year-to-year rollovers.

The key idea here is portability and ongoing accumulation of funds in a medical account. A Health Savings Account is owned by the individual, not an employer, and the money in it—including contributions and earnings—stays with the person from year to year. That means unused funds don’t vanish at year end; they roll over and can grow over time, which allows the balance to build up if you don’t need to use it right away. The account is typically paired with a high-deductible health plan, and withdrawals for qualified medical expenses are tax-advantaged. You can take the HSA with you if you change employers or retire, which is another aspect of its portability.

In contrast, Flexible Spending Accounts are generally employer-owned and designed for use within a plan year, with only limited rollover allowed in some cases. Healthcare Reimbursement Accounts are funded and owned by the employer, so funds aren’t portable to the employee. An Exclusive Provider Organization is a type of health insurance plan, not a spending account, so it doesn’t feature year-to-year rollovers.

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