HSA and HRA Question

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Topic Author
magister
Posts: 31
Joined: Thu Jun 21, 2018 4:18 pm

HSA and HRA Question

Post by magister »

I'd like to enroll in an HSA with a new employer, but I'm unsure whether I'm eligible because of my wife's HRA. Until a couple of months ago, I'd been unaware of the existence of her HRA, since she didn't elect to enroll in it. But a debit card with access to $100 for health expenses showed up for her in the mail recently. After some inquiry with her benefits administrator, it appears that these funds were associated with a health insurance policy from 2020, and had been rolled over (apparently twice) from the policy that terminated in 2020. (She still has the same insurance provider as in 2020.) The benefits adminstrator doesn't have any record of an active HRA for her in 2021 or 2022, and the person we spoke with emphasized that the HRA was attached to her group health insurance plan, and was not funded by her employer. It appears that this HRA could be used to reimburse any medical expenses (i.e., it's not a "limited-purpose" HRA).

I'm wondering whether this HRA precludes my enrolling in an HSA. I'd appreciate any advice you can offer. Apologies if this has already been covered somewhere, but I couldn't find any previous post about a situation quite like mine.
Gryphon
Posts: 357
Joined: Sat May 07, 2016 11:43 am
Location: Missouri

Re: HSA and HRA Question

Post by Gryphon »

Sounds to me like it would disqualify you for an HSA.

One option would be to spend the $100 before the end of this year to get rid of the HRA & start your HSA next year. Some easy ways to spend the money:

Dental exams & cleanings.
Eye exams, eyeglasses, and contacts.
Prescription meds.
Covid home testing kits, face masks, and hand sanitizer.
OTC medicines*
Menstrual care products*

*the last two appear to be qualified expenses for HRAs according to IRS Pub 969.

You should also make a note to talk to your wife's benefits administrator again during open enrollment for next year & make sure they're not planning to bring back the HRA for 2023. It's tempting to assume they won't since you didn't get one in 2021 or 2022, but it's best to make sure before you commit to an HSA for next year.
Topic Author
magister
Posts: 31
Joined: Thu Jun 21, 2018 4:18 pm

Re: HSA and HRA Question

Post by magister »

Thanks, Gryphon.
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