A key feature that distinguishes a Health Savings Account (HSA) from an employer-owned account such as an HRA is that the HSA:

Why A is correct

An HSA is individually owned, which makes it portable: the account belongs to the person, not the employer, so it carries over when the individual changes jobs, and the funds roll over year after year into retirement. Both the individual and the employer may contribute to an HSA (subject to annual limits) if the person is covered by a qualifying high-deductible health plan. This individual ownership and portability is what distinguishes the HSA from an employer-owned HRA, which generally does not follow a departing employee.

Why the other options are wrong

• B) Employer ownership and termination at separation describe an HRA, not an HSA, which is individually owned and portable. Employer ownership and termination at separation describe the HRA, and the contrast is exactly what makes the HSA portable; the individual owns the HSA account outright.
• C) An HSA may be funded by both the individual and the employer, not by the employer alone. The HSA is designed for both individual and employer contributions within annual limits, so an employer-only funding rule misstates the statutory design.
• D) Forfeiting unused funds at year-end describes a flexible spending account (FSA), not an HSA, whose balances roll over. HSAs roll over without forfeiture year after year; the use-or-lose feature belongs to the FSA, not the HSA.

Memory hook

HSA is yours to keep: individual ownership means the money travels with you, job changes and all.