Should I Get an HRA or HSA? - A Comprehensive Guide

When it comes to healthcare options, navigating through the jargon can be overwhelming. One common dilemma many individuals face is choosing between a Health Reimbursement Arrangement (HRA) and a Health Savings Account (HSA). Both have their own benefits, but which one suits your needs better?

Let's break it down to help you make an informed decision:

Health Reimbursement Arrangement (HRA)

• Employer-funded account to cover eligible medical expenses
• Contributions are made by the employer
• Unused funds may roll over year to year
• Restrictions on who can contribute and use the funds

Health Savings Account (HSA)

• Individual-funded account for medical expenses
• Contributions are made by the individual, with potential employer contributions
• Unused funds can be rolled over and invested for future use
• Flexible use of funds for qualified medical expenses

So, which should you choose?

If you prefer:

• Hands-on control over your healthcare expenses
• Ability to save for future medical costs
consider an HSA.

However, if you prefer:

• Employer-funded healthcare benefits
• Fixed contribution amounts
• Not needing to worry about managing the account
an HRA may be the better option for you.

Determining the right choice between a Health Reimbursement Arrangement (HRA) and a Health Savings Account (HSA) is key to your financial and healthcare strategy.