Company HRA Checklist (2026) | HSA Tracker

Identify the specific type of HRA offered by your employer (e.g., QSEHRA, ICHRA, Excepted Benefit HRA).

Knowing the HRA type is foundational, as each has distinct rules regarding eligible expenses, contribution limits, and how it interacts with other health coverage. This prevents misunderstandings about your benefits.

Obtain and thoroughly review your company's HRA plan document or summary plan description.

This document contains all the official rules, including eligible expenses, claim submission procedures, and any carryover provisions, which are essential for proper utilization and compliance.

Understand the list of expenses eligible for reimbursement under your specific HRA.

Eligible expenses vary by HRA type and employer. A clear understanding prevents submitting claims for non-reimbursable items and ensures you maximize your benefits for actual medical costs.

Confirm the annual funding amount provided by your employer for your HRA in 2026.

Knowing your HRA balance helps you budget for healthcare expenses and understand the maximum benefit you can receive. For example, an Excepted Benefit HRA has a $2,200 annual limit for 2026.

Clarify if your HRA has a carryover provision for unused funds into the next plan year.

Some HRAs allow unused funds to roll over, while others have a 'use-it-or-lose-it' policy. Understanding this helps you strategically plan your expense submissions to avoid forfeiting benefits.

Understand the employer's role in funding and ownership of your HRA funds.

HRA funds are employer-owned and not portable. This is a critical distinction from HSAs and impacts your financial planning if you change jobs or retire.

Determine if your HRA is considered 'HSA-compatible' or 'limited purpose' to allow concurrent HSA contributions.

A non-HSA-compatible HRA will disqualify you from making or receiving HSA contributions, leading to potential tax penalties. This is a critical distinction to avoid fear of IRS audits.

Verify you are enrolled in a High Deductible Health Plan (HDHP) that meets 2026 IRS requirements for HSA eligibility.

For 2026, an HDHP must have a minimum deductible of $1,700 for individuals or $3,400 for families, and maximum out-of-pocket limits of $8,500 individual or $17,000 family. Meeting these is essential for HSA eligibility.

Confirm you are not enrolled in Medicare or any other disqualifying health coverage if you intend to contribute to an HSA.

Enrollment in Medicare or other non-HDHP health coverage generally disqualifies you from contributing to an HSA, regardless of your HRA status. This is a frequent source of confusion.

Understand that HRA funds are employer-owned and not portable if you leave your job, unlike HSAs.

This fundamental difference affects long-term financial planning. HSA funds are yours for life, while HRA funds are tied to your employment.

Ensure your HRA does not reimburse expenses covered by your HDHP deductible if you wish to maintain HSA eligibility.

If your HRA pays for general medical expenses before your HDHP deductible is met, it can render you ineligible for HSA contributions. Clarify this with your HR department.

Track your eligible healthcare expenses throughout the year to ensure full reimbursement.

Diligent tracking helps ensure you don't miss out on eligible reimbursements, maximizing the value of your HRA and alleviating HDHP sticker shock.

Be aware of the 2026 HRA contribution limits: QSEHRA ($6,450 single/$13,100 family), Excepted Benefit HRA ($2,200 annual).

Knowing these limits helps you understand the maximum benefit available to you and prevents overspending or missing out on potential reimbursements.

Submit claims for reimbursement according to your employer's specified deadlines and procedures.

Late or improperly submitted claims can lead to denied reimbursements, causing you to lose out on funds you are entitled to.

Utilize your HRA for dental and vision expenses, which are often eligible and can be a significant cost.

These expenses are frequently overlooked but can quickly add up. Using your HRA for them reduces your out-of-pocket costs and helps maximize the benefit.

Consider using your HRA for mental health services if eligible under your plan, as these are increasingly covered.

Mental health support is a crucial part of overall well-being. Using HRA funds for these services can make essential care more affordable.

If applicable, use your HRA to reimburse individual health insurance premiums (common with QSEHRA).

For those with a QSEHRA, tax-free reimbursement of individual health insurance premiums can be a substantial financial benefit, significantly reducing monthly healthcare costs.

Confirm that HRA reimbursements are tax-free to you, the employee, for qualified medical expenses.

This is a key tax advantage of HRAs. Understanding this ensures you accurately report income and avoid unexpected tax liabilities.

Keep detailed records and receipts for all expenses submitted for HRA reimbursement.

In case of an audit, the IRS may require proof that expenses were qualified. Meticulous record-keeping is your best defense against potential issues.

Understand that HRA contributions are solely employer-funded and not reflected as taxable income on your W-2.

Unlike some other benefits, employer contributions to an HRA are not considered taxable income to you, simplifying your tax calculations.

Consult a tax advisor if you have complex healthcare benefit arrangements or specific tax questions.

Complex scenarios, like coordinating an HRA with an HSA or other benefits, can have nuanced tax implications. A professional can provide tailored advice to avoid missing tax deductions.

Review any year-end statements from your HRA administrator for accuracy and reconciled expenses.

Verifying your statements ensures all reimbursements are correctly recorded and helps you track your remaining balance or carryover for the next year.

Be aware of any IRS amendments to HRA rules that apply to plan years after 2024.

Tax laws and regulations evolve. Staying informed about recent changes ensures your HRA usage remains compliant with the latest IRS guidelines.