Can I Contribute to an HSA if I Have an Employer HRA? - Understanding HSA and HRA Rules

Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs) are both great tools that can help you cover medical expenses, but they have different rules when it comes to contributions. One common question that arises is whether you can contribute to an HSA if you have an employer HRA.

It's important to understand the rules surrounding these accounts to make informed decisions about your healthcare finances.

Here's what you need to know:

What is an HSA?

An HSA is a tax-advantaged savings account that you can use to pay for qualified medical expenses. To be eligible to contribute to an HSA, you must be covered by a high-deductible health plan (HDHP).

What is an HRA?

An HRA is an employer-funded account that reimburses you for out-of-pocket medical expenses. Unlike an HSA, an HRA is funded solely by your employer.

Can you contribute to an HSA if you have an employer HRA?

Yes, you can contribute to an HSA if you have an employer HRA, but there are some important considerations to keep in mind:

• If your employer HRA is a
  

  Health Savings Accounts (HSAs) are a fantastic option for individuals looking to save money on their healthcare costs, especially when considering the added benefit of using it in conjunction with an employer-funded Health Reimbursement Arrangement (HRA).