What happens to the employer contributions if my HRA account balance is at the maximum?
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. Your collective bargaining agreement will state whether the excess contributions, which otherwise would have been made to the HRA and credited to your account, will be deposited in the Deferred Salary Plan or the Annuity Plan.
Related Questions
- What happens when HSA contributions exceed the maximum amount that can be deducted or excluded from gross income in a taxable year?
- What happens to Employer contributions made on my behalf when I work in an area of a different IBEW Local Union?
- What happens to the employer contributions if my HRA account balance is at the maximum?
