HRA, FSA, AND HSA at the same time?

[Belgarath]

If you follow the guidelines, you clearly can have any two out of the three at the same time. If your FSA is limited purpose, and your HRA is set up to only pay after reaching the deductible of $1350/$2700, is there any reason you can't have all three? IRS publication 969 seems to indicate that you can - says you can have one or more of the following. Mind you, I have no idea how this would work in practical terms, or whether there is any advantage to it. Perhaps there is - if you meet the $1350/$2700 deductible, and then your other plan(s) kick in, you could theoretically contribute the maximum to the HSA?

 

Other employee health plans. (p4)

An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally can’t make contributions to an HSA. Health FSAs and HRAs are discussed later.

However, an employee can make contributions to an HSA while covered under an HDHP and one or more of the following arrangements.

• Limited-purpose health FSA or HRA. These arrangements can pay or reimburse the items listed earlier under Other health coverage except long-term care. Also, these arrangements can pay or reimburse preventive care expenses because they can be paid without having to satisfy the deductible.
• Suspended HRA. Before the beginning of an HRA coverage period, you can elect to suspend the HRA. The HRA doesn’t pay or reimburse, at any time, the medical expenses incurred during the suspension period except preventive care and items listed under Other health coverage. When the suspension period ends, you are no longer eligible to make contributions to an HSA.
• Post-deductible health FSA or HRA. These arrangements don’t pay or reimburse any medical expenses incurred before the minimum annual deductible amount is met. The deductible for these arrangements doesn’t have to be the same as the deductible for the HDHP, but benefits may not be provided before the minimum annual deductible amount is met.
• Retirement HRA. This arrangement pays or reimburses only those medical expenses incurred after retirement. After retirement you are no longer eligible to make contributions to an HSA.

[mjroberts222]

you're on the right path.  you could have all 3, but what's the goal?  one other factor to throw into the decision making process is contributions towards insurance.  so if there is a set budget, you would have to weigh each of the following:

• employer contributions to premiums
• employer contributions to an hsa
• employer contributions to an hra

[Belgarath]

Thanks. What's the goal? No idea whatsoever at this point - it was just an inquiry if it was possible.

[mjroberts222]

no worries.  i've just seen clients do wackily complex stuff thinking it was a good idea and it backfired.  ?