Is the HSA ( Health Savings Account) the same as an HRA ( Health Reimbursement Acount)?

danielw9891 — Sat, 01 Jun 2019 05:02:02 GMT

No, an HSA is quite different from an HRA. HSA An...

BMcCalpin — Sat, 01 Jun 2019 05:02:03 GMT

No, an HSA is quite different from an HRA.

***HSA***

An HSA is a tax-deferred savings account for paying expenses that fall within the deductible of an HDHP (a High Deductible Health Plan). The HDHP is a health insurance policy like other policies you may be familiar with, but with high deductibles.

Even though the HDHP comes with a high deductible, you can pay for expenses that fall within the deductible with tax-free dollars.

Both you and your employer can contribute to your HSA. There are limits on how much you can contribute between you.

If you have any contributions to or distributions from an HSA in a given year, then you must file form 8889 with your annual income tax return.

***HRA***

An HRA is funded solely through employer contributions. You cannot contribute to it.

There is no limit as to how much the employer can contribute to the HSA.

There are no reporting requirements on your tax return for an HRA.

topic Is the HSA ( Health Savings Account) the same as an HRA ( Health Reimbursement Acount)? in Deductions & credits

Is the HSA ( Health Savings Account) the same as an HRA ( Health Reimbursement Acount)?

No, an HSA is quite different from an HRA. ***HSA*** An...

No, an HSA is quite different from an HRA. HSA An...