Can You Have an HRA Account and a Previous HSA Account with No Funds Going Into It?

Yes, you can have a Health Reimbursement Arrangement (HRA) account alongside a previous Health Savings Account (HSA) account with no funds going into it. It is essential to understand the rules and regulations governing these accounts to maximize their benefits.

An HRA account is typically provided by your employer to reimburse you for eligible medical expenses. On the other hand, an HSA account is an individual account that allows you to save for qualified medical expenses on a tax-free basis.

Here are a few key points to keep in mind:

• While you can have both an HRA and a previous HSA account, there are specific guidelines to follow to ensure compliance with IRS regulations.
• If you no longer contribute to your HSA account and have switched to an HRA, you can still use the remaining funds in your HSA for qualified medical expenses.
• It's crucial to keep accurate records of your HSA transactions and reimbursements to avoid any tax implications.

Absolutely! You can hold both a Health Reimbursement Arrangement (HRA) and a previous Health Savings Account (HSA) that isn’t receiving any contributions. Understanding the distinctions between these accounts can greatly enhance your healthcare budgeting.