Can You Do an HSA with an HRA? A Comprehensive Guide

When it comes to managing healthcare expenses, understanding the options available to you is crucial. Two common tools that individuals often confuse are Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs). But can you do an HSA with an HRA? Let's dive into the details.

HSAs and HRAs are both tax-advantaged accounts that help individuals save for medical expenses. They have key differences that are important to note:

• HSAs are owned by the individual, are portable, and can be used to pay for qualified medical expenses tax-free.
• HRAs are owned by the employer, are not portable, and employers fund them to reimburse employees for qualified medical expenses.

So, can you have both an HSA and an HRA? The short answer is yes, but with some limitations:

• If you have an HRA, you can still be eligible to contribute to an HSA if the HRA is a limited-purpose or post-deductible HRA.
• If your HRA is a general-purpose HRA, you may not be eligible to contribute to an HSA.

Key points to consider when combining an HSA with an HRA:

• Review the terms of your HRA to determine if it qualifies as a limited-purpose or post-deductible HRA.
• Understand the impact on your HSA contributions based on the type of HRA you have.
• Maximize the benefits of both accounts by using them strategically for different types of medical expenses.

By understanding the rules and limitations of combining an HSA with an HRA, you can make informed decisions about managing your healthcare expenses effectively.




Understanding HSAs and HRAs Together can significantly enhance your ability to manage healthcare costs. If you're someone who frequently visits doctors or needs prescriptions, combining these two accounts can be a game-changer.