What is the difference between an HRA and an HSA?

An HRA is employer-funded only; an HSA allows personal contributions. HSAs are portable (you keep them when you leave); most HRAs are not. HSAs require HDHP enrollment; traditional HRAs do not. HSAs have investment options; HRAs typically do not.

An Individual Coverage HRA (ICHRA) allows employers of any size to reimburse employees for individual health insurance premiums and medical expenses. There is no federal contribution cap, and employers can vary amounts by employee class under the current rule set.

Do HRA reimbursements count as taxable income?

No. HRA reimbursements for qualified medical expenses are tax-free to the employee. This means a $3,000 HRA benefit is worth more than $3,000 in salary because you'd otherwise need $4,000+ in gross pay to have $3,000 after taxes.

Can I keep my HRA if I leave my job?

For traditional group HRAs, typically no — the balance is forfeited when you leave. Some employers allow a brief runout period to submit claims for expenses incurred during employment. ICHRA and QSEHRA may have different portability rules.

What expenses are HRA-eligible?

Eligible expenses depend on your plan design. Most HRAs cover medical, dental, and vision expenses defined under IRS Section 213(d). Some HRAs are limited to specific expenses (like deductible costs only). Check your plan's Summary Plan Description for details.

A Qualified Small Employer HRA (QSEHRA) is for employers with fewer than 50 employees who do not offer group health insurance. Annual reimbursement limits are adjusted over time, so the exact individual and family maximums depend on the year involved. Employees generally need minimum essential coverage to receive tax-free reimbursements.

HRA Balance and Benefit Calculator

Track your HRA balance, estimate reimbursements, and calculate the total value of your employer-funded Health Reimbursement Arrangement.

HRA Type

Employer Annual Contribution

Rollover from Last Year

Reimbursements Received

Expected Remaining Expenses

Your Marginal Tax Rate

Available Balance

$1,700.00

Of $3,500.00 total funds

HRA Covers

$1,700.00

Of $2,000.00 expected expenses

Your Out-of-Pocket

$300.00

Expenses beyond HRA balance

HRA Utilization

51.40%

Percentage of funds used

Tax Value of Reimbursements

$450.00

Tax savings from tax-free reimbursements

Projected Total Tax Benefit

$875.00

If all remaining covered expenses are claimed

Planning notes, formulas, and examples

About the HRA Balance and Benefit Calculator

A Health Reimbursement Arrangement (HRA) is an employer-funded arrangement that reimburses employees for qualified medical expenses and, in some plan designs, insurance premiums. Unlike HSAs, employees generally do not contribute their own money to an HRA.

HRAs come in several types: traditional HRAs paired with employer plans, ICHRAs that reimburse individual-market premiums, and QSEHRAs for qualifying small employers. Each has its own contribution, eligibility, and rollover rules.

This calculator helps you track available HRA balance, estimate likely reimbursements, and understand the practical value of the benefit. These are educational estimates only and not plan guarantees.

When This Page Helps

HRAs represent real compensation value that many employees overlook. Tracking the balance and likely reimbursements helps you decide when to use the benefit and how much of upcoming medical spending might actually be covered.

How to Use the Inputs

Enter your employer's annual HRA contribution.
Enter any rollover balance from the previous year.
Enter total eligible expenses submitted so far.
Enter your expected remaining medical expenses for the year.
Select your HRA type to see applicable rules.
Review your available balance and projected benefit usage.

Formula used

Available Balance = Employer Contribution + Rollover − Reimbursements Paid
Remaining Benefit = Available Balance
Utilization Rate = Reimbursements / (Contribution + Rollover) × 100
Benefit Value = Total Reimbursements × (1 + Tax Rate) — since reimbursements are tax-free

Example Calculation

Result: Available: $1,700 | Can cover $1,700 of remaining $2,000

Total HRA funds: $3,000 + $500 rollover = $3,500. Already reimbursed: $1,800. Available: $1,700. Of the $2,000 expected remaining expenses, the HRA covers $1,700, leaving $300 out of pocket.

Tips & Best Practices

Submit all eligible expenses promptly — unsubmitted expenses can't be reimbursed after the filing deadline.
Keep all receipts and Explanation of Benefits statements for HRA claims.
Check whether your HRA allows rollover — some plans forfeit unused balances annually.
ICHRA participants can use HRA funds to reimburse individual health insurance premiums.
These are educational estimates — check your specific plan documents for eligible expenses and rules.
HRA funds are tax-free to you — they're worth more than the dollar amount suggests.

Understanding HRA Types

Traditional HRAs are integrated with employer group plans and usually cover cost-sharing. ICHRAs reimburse employees for individual-market premiums and other eligible costs. QSEHRAs are designed for qualifying small employers that do not offer group coverage.

Maximizing Your HRA Benefit

The key to maximizing HRA value is understanding what your plan allows and submitting claims promptly. Employees often leave money on the table by not filing eligible vision, dental, pharmacy, or copay expenses.

HRA and Other Accounts

HRAs can sometimes be paired with HSAs or FSAs, but the rules are plan-specific and can be complex. A limited-purpose HRA may coexist with an HSA, while an ICHRA can affect premium-tax-credit eligibility. Check your plan documents or benefits administrator for the exact combination rules that apply to you.

Sources & Methodology

Last updated: March 31, 2026

Frequently Asked Questions

An HRA is employer-funded only; an HSA allows personal contributions. HSAs are portable (you keep them when you leave); most HRAs are not. HSAs require HDHP enrollment; traditional HRAs do not. HSAs have investment options; HRAs typically do not.