When are HRA and HSA Available for Use?

Health Reimbursement Arrangements (HRA) and Health Savings Accounts (HSA) are two important tools that can help individuals save for healthcare expenses. Understanding when these accounts are available for use is crucial for maximizing their benefits.

Here's a breakdown of when HRA and HSA funds are available for use:

• HRA:
• Funds in an HRA are made available for use as soon as the employer contributes to the account.
• Employees can access HRA funds at any time, depending on the employer's plan rules.
• Unused HRA funds may or may not roll over to the next year, depending on the employer's policy.
• HSA:
• Funds in an HSA are available for use as soon as they are deposited into the account.
• HSAs are owned by the individual, so the funds remain available even if you change jobs or retire.
• Unused HSA funds roll over from year to year, allowing for long-term savings and investment.

Health Reimbursement Arrangements (HRA) and Health Savings Accounts (HSA) play a vital role in helping individuals manage their healthcare costs effectively. Knowing when and how to access these funds can significantly enhance your financial planning.