You can have both types of accounts, but only under certain circumstances. General Health Reimbursement Arrangements (HRAs) will probably make you ineligible for an HSA. If your employer offers a “limited purpose” (limited to dental, vision or preventive care) or “post-deductible” (pay for medical expenses after the plan deductible is met) HRA, then you can still be eligible for an HSA.

You cannot have an HSA if your spouse’s FSA or HRA can pay for any of your medical expenses before your HDHP deductible is met.

You can have both types of accounts, but only under certain circumstances. General Flexible Spending Arrangements (FSAs) will probably make you ineligible for an HSA. If your employer offers a “limited purpose” (limited to dental, vision or preventive care) or “post-deductible” (pay for medical expenses after the plan deductible is met) FSA, then you can still be eligible for an HSA.

According to IRS Rev Ruling 2004-45 an HSA can only be used with a Limited Purpose HRA, which reimburses for permitted insurance, vision, dental, and preventive care.

much or as little as you want (while staying below the legal limit on the account of $2,850 for employees with self-only coverage or $5,650 for employees with family coverage in 2007).

You should consider the situation very carefully before refusing modified work. If you refuse modified work then WSIB may decide you are not cooperating and terminate your benefits. See OWA Fact Sheet 10 called Early and Safe Return to Work.

As much or as little as you want (while staying below the legal limit on the account of $2,850* or $5,650* for employees with family coverage). *These amounts are for 2007. They are indexed annually for inflation.

Great news! Effective January 1, 2007, the rules now allow greater employer contributions for lower-paid employees. Previously, employer contributions under the comparability rules had to be the same amount or percentage of the deductible for all employees with the same category of coverage. Consequently, employers could not contribute higher amounts to lower-paid employees.

Yes, contributions can be made by both you and your employer. Just keep in mind that all deposits count towards the maximum annual contribution.

A Health Savings Account (HSA) is an investment account from which you can draw money tax-free for medical care. HSAs are owned by the individual and grow through investments, similar to an IRA. HSAs have favorable tax treatment for contributions, distributions and earnings. They are available to individuals covered by a high deductible health plan (HDHP) and can be established to pay for family medical expenses.

Typically an HSA only allows a Federal deduction, however in some states you can deduct the state tax. The HRA is a business expense which allows for a deduction from Federal, State, and FiCA taxes.

If your account equals or exceeds the maximum amount, you will not receive any further employer contributions to the HRA until you are paid benefits that are sufficient to reduce your balance below the maximum. However, you will continue to earn interest based on your account balance.

A small group employer can set up health savings accounts for individual employees who have qualified HDHP coverage. However, it is the individual employee who owns their HSA.

The funds are yours to keep. You may elect one of the following options: Leave your funds in the current HSA account; Transfer your funds to an HSA with your new employer; or Transfer your funds to another qualifying account within 60 days.

Employer contributions must be “comparable”, that is they must be in the same dollar amount or same percentage of the employee’s deductible for all employees in the same “class”. You can vary the level of contributions for “full-time” vs. “part-time” employees, and employees with “self-only” coverage vs. “family coverage”.

An HRA (Health Reimbursement Arrangement) is used by employees to pay for eligible health care expenses. It is offered in conjunction with a high-deductible health insurance plan. An HRA is owned and funded by the employer. At the end of the year, unused funds may be carried over to the next year at the employer's discretion. If an employee leaves the company, the HRA stays with the employer.