Can You Have an HSA and HRA? All You Need to Know

Having both a Health Savings Account (HSA) and a Health Reimbursement Arrangement (HRA) can offer great benefits, but there are certain rules and limitations to consider. Let's dive into the details of whether you can have both an HSA and HRA.

While each account provides tax advantages for healthcare expenses, they differ in terms of eligibility requirements and contribution limits:

• An HSA is only available to individuals enrolled in a high-deductible health plan (HDHP).
• An HRA is typically offered by an employer and can be used in conjunction with other health plans.

So, can you have both? The short answer is yes, but there are some important points to keep in mind:

• If you have an HRA, it must be a limited-purpose or post-deductible HRA to qualify for an HSA.
• Employers can also offer a flexible spending account (FSA) in addition to an HSA and HRA.

By strategically using these accounts together, you can maximize your healthcare savings and benefits. However, it's essential to understand the rules and restrictions to make the most of your HSA and HRA combination.

Yes, you can indeed have both an HSA and an HRA, offering a unique financial strategy for your healthcare needs. Each of these accounts provides distinct tax benefits while allowing you to manage your medical expenses efficiently.