Can I Keep My HSA if I Get an HRA? - Understanding Health Savings Accounts and Health Reimbursement Arrangements

Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs) are both valuable tools that can help you cover medical expenses. But what happens if you have both? Can you keep your HSA if you enroll in an HRA?

The good news is that you can have both an HSA and an HRA at the same time. However, there are certain rules and limitations you need to be aware of:

• If you have an HRA, you may still be eligible to contribute to an HSA as long as the HRA is a limited-purpose or post-deductible HRA.
• If your HRA is a general-purpose HRA, you will not be eligible to contribute to an HSA.
• You cannot use funds from your HRA to contribute to your HSA, as this would be considered double-dipping.
• If you leave your job or switch to a different health plan, you may have the option to roll over your HRA funds into your HSA.

It's important to understand the differences between HSAs and HRAs to make the most of these benefits. While HSAs are individually owned and portable, HRAs are employer-funded and may have restrictions on portability.

Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs) can be great companions when it comes to managing healthcare costs. If you find yourself in a situation where you have both, it’s helpful to know that you can keep your HSA even if you sign up for an HRA.