Few Questions about HSAs

[jarrs05]

First question is I have a HRA plan through my employer but they offer no reinburment account just insurance it meets the HDHP requirments for an HSA $2500 deductable but will this plan qualify for and HSA since it is an HRA plan.

Second if my plan qualifies wheres a good place to open one at. I see vanguard has a deal with health saving administrators it has 20 vanguard funds to choose from. Are any of you using this custodian if so do they have a minimum investment. And how does the debit card work.

[jpg7n16]

Before going any further, I'd really recommend that you speak with your HR department about what your benefits are exactly. Do you get a HRA and a HSA? Just a HRA? If HSA elligible, what firms can you open an account with? What are your medical benefits? etc.


Then I'd recommend taking a look around the IRS publication on health savings plans: Publication 969 (2011), Health Savings Accounts and Other Tax-Favored Health Plans

Specifically about HRAs: IRS.gov - HRAs (Pub 969)

From: IRS.gov - HRAs (Pub 969)

An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally cannot make contributions to an HSA.

Unfortunately, no - it doesn't look like you qualify for a deduction with just an HRA.


Here's a good site that has a great comparison between HRAs and HSAs - what they are, and how they're different:

http://www.shrm.org/hrdisciplines/benefits/Articles/Pages/HSAsvsHRAs.aspx

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Now, if you are elligible to open a HSA (speak to your HR), Vanguard is a fine company.

Vanguard - HSAs

The debit card is just an easier way to take withdrawals. If you withdraw from the HSA for a qualifying medical expense, it's tax-free. Using the debit card makes it easier to withdraw.