What makes a HRA different from an FSA?
HRAs, developed under U.S. Treasury and IRS rulings, operate using employer funds only – there are no employee contributions. HRAs reimburse current, former or retired employees, including spouses and dependents, for: • Medical care expenses as defined by IRS Code Section 213 • Health-related insurance premiums • Long-term care insurance premiums There is no dollar limit to the employer’s contribution for HRAs and any unused amounts by the employee can carry forward from year to year. Tax savings are enjoyed by both employers and employees — reimbursements paid by the employer are eligible as a business deduction and are also tax-free for employees. NOTE! When used in conjunction with an FSA, the employer decides which account pays for the reimbursement first. ProcessWorks Proven Processes Communication tools are complimentary assets that facilitate maximum participation, keeping you and your employees informed. • Employee brochure • Website demo • Sample employee letters and announce
