Is an HSA compatible with an HRA/FSA? Yes, this is permitted if the combination is: • “Limited purpose” flexible spending accounts (FSAs) and Health Reimbursement Arrangements (HRAs) that restrict reimbursements to certain permitted benefits such as vision, dental or preventive care benefits. • “Post-deductible” FSA or HRAs that only provide reimbursement after the minimum annual deductible has been satisfied under the HDHP. What are the advantages of an HSA? HSA funds roll over year-to-year; there are tax benefits on contributions, earnings and distributions; and long-term investment opportunities are available. If I set up an HSA through my employer, what happens if I switch jobs? The funds are portable and go with you. Can I make distributions for non-healthcare expenses? Yes, though the distribution may be subject to income tax and penalties. After the age of 65, you can use the funds for non-qualified expenses without penalty, though the funds may be subject to income tax. © 2023-2024 HSA Bank. HSA Bank is a division of Webster Bank, N.A., Member FDIC. Plan Administrative Services and Benefit Services are administered by Webster Servicing LLC. HSA_FAQ_090424 Visit hsabank.com or call the number on the back of your debit card for more information.