HSA and HRA

Forum|Forum|4 years ago
March 7, 2022
2 replies
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I have HSA from previous employer and HRA from current. Can I contribute to HSA from my previous employer? How does IRS track if I have HRA and HSA?

Not A Product Question

Cynthiad66

The IRS does not track the HRA because it is fully funded by the employer and not included in income by you.. Your HSA is reported to the IRS on form 1099-SA. The HSA account belongs to you, not to your former employer. As long as the HSA custodian permits you to deposit contributions into the account (I can't imagine that they would not allow you to do so), yes, you can use the existing HSA account to receive your HSA contributions.

An HRA must receive contributions from the employer only. Employees may not contribute. Contributions aren't includible in income. Reimbursements from an HRA that are used to pay qualified medical expenses aren't taxed.

Use this link for more information: Health Savings Retirement Account and Other Tax Favored Health Plans

You can have both HRA and a HSA at the same time. Healthcare spending accounts, such as Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs), help individuals and families pay for medical expenses. The answer is yes, you can have an HRA and HSA at the same time, under specific circumstances.

How do HRA and HSA work together?

The HRA reimburses all deductible expenses above $1,500. You're eligible to fund an HSA since your HRA is now an HSA-qualified medical plan as well. You can use HSA funds to reimburse the first $1,500 of deductible expenses tax-free before the HRA begins to reimburse your claims.

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Boombaby99

I have been looking for an answer to this question and have received different answers, even on this website. Thank you so much for clarifying what I believe the IRS says in their publications. My family is enrolled in a HDHP that has a $9k deductible with an integrated HRA that is post deductible. It doesn't reimburse any claims before $4k. After $4k in claims have been paid, the HRA will reimburse the next $2kin claims. It appears HSA participation is still allowable under these circumstances because both the HRA and the health insurance plan meet the IRS minimum annual deductible to be considered HDHPs.

BillM223

Yes, you can contribute to your HSA because your HRA is post-deductible. See IRS Publication 969.

Note that you can use amounts out of the HSA to pay for items that are not covered by the HRA or the HDHP policy.

Note that, generally, you can't use both HRA and HSA dollars to pay for the same expense.

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Mike9241

note to contribute to an HSA you must be covered by a high deductible health insurance plan and no other health insurance plan that is not high deductible. certain insurance doe not disqualify you like dental coverage, cancer coverage,