Can You Have HSA and HRA? Understanding Health Savings Accounts and Health Reimbursement Arrangements

Check eligibility on the go — browse 7,000+ HSA-eligible products in the free app.

Can HSA and HRA coexist together

Many individuals may wonder whether they can have both a Health Savings Account (HSA) and a Health Reimbursement Arrangement (HRA) at the same time. The good news is, the answer is yes, but there are some important considerations to keep in mind.

Many individuals may wonder whether they can have both a Health Savings Account (HSA) and a Health Reimbursement Arrangement (HRA) at the same time. The exciting news is that you absolutely can! It's essential to understand how to navigate both options effectively to maximize your healthcare savings.

Key differences between HSA and HRA

Both HSAs and HRAs are types of accounts that can help you save money on healthcare expenses, but they have different rules and regulations. Here's a breakdown of each:

• Health Savings Account (HSA):
• Health Reimbursement Arrangement (HRA):

• Requires a High Deductible Health Plan (HDHP)
• Contributions are tax-deductible
• Interest and investment earnings are tax-free
• Funds roll over from year to year
• Can be used for qualified medical expenses

• Employer-funded account
• Reimburses you for eligible medical expenses
• Contributions are tax-free
• Employer controls the account
• Unused funds may be forfeited

How to qualify with both accounts

Here's how you can have both an HSA and HRA:

• You can have an HRA and still be eligible to open and contribute to an HSA, but there are some limitations.
• If your HRA is a limited-purpose HRA, meaning it only covers certain medical expenses like vision and dental care, you can still contribute to an HSA.
• If your HRA is a post-deductible HRA, you can contribute to an HSA only after you meet the deductible.

It's essential to understand the rules and limitations of both accounts to maximize your healthcare savings. Consult with a financial advisor or benefits specialist to determine the best strategy for your situation.