The IRS rules allow an employee to contribute to an HSA while covered by an HRA only if the HRA is limited to preventative care, and a few other expenses.
According to the rules, this limitation can be elected before the coverage period begins by ‘suspending’ the medical benefit of the HRA.
How does an employee covered by an Admin America HRA elect to suspend their HRA?
Suspended HRA: Before HRA coverage begins, you suspend your HRA by electing to forgo reimbursement for medical expenses incurred during the coverage period. As a result, you are HSA-eligible during the suspension period. The suspension does not apply to otherwise HRA-eligible expenses that are permitted insurance, permitted coverage, or preventive care.
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