Can I Use HSA When I Have an HRA? - Understanding Health Savings Accounts and Health Reimbursement Arrangements

Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs) are two popular options that help individuals save for medical expenses. But can you use an HSA when you have an HRA?

Firstly, it's important to understand the basics of both accounts:

• HSA: A type of savings account that allows individuals to save money tax-free for qualified medical expenses. Contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are also tax-free.
• HRA: An employer-funded arrangement that reimburses employees for qualified medical expenses. Unlike an HSA, HRAs are funded solely by the employer.

So, can you use an HSA when you have an HRA? The answer is yes, but there are some limitations and considerations:

• Whether you can contribute to an HSA while having an HRA depends on the type of HRA you have.
• If you have an HRA that is considered
  

  Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs) are designed to help you manage medical costs. If you're wondering whether you can use an HSA alongside an HRA, the good news is that you can, but with some rules to keep in mind.