What happens to the money if an employer terminates the reimbursement plan and there are still funds within the Plan?
• With the HRA methodology, the client must leave the money on account until each employee has no money left on account OR notifies the employees that the Plan is ending and they need to submit their final eligible expenses. Anything left in the Plan is equally distributed amongst all Plan contributors. Since the employer is the only contributor, the employer keeps the remaining funds.
Related Questions
- I am currently enrolled in a Flex Medical Reimbursement Account and/or Daycare Reimbursement Account. What happens to my money that is left in the plan when I leave UTMB?
- What happens to funds contributed to a reimbursement account if an employee terminates employment?
- What happens when an employer terminates its participation in a VEBA plan?
