Health Reimbursement Arrangements (HRAs) are employer-funded group health plans from which employees are reimbursed tax-free for qualified medical expenses up to a fixed dollar amount per year. Unused amounts may be rolled over to be used in subsequent years. The employer funds and owns the arrangement. According to IRS regulations, HRAs can only be funded by the employer. Participants in the HRA aren’t allowed to contribute—a distinction that often gets confused with HSAs and FSAs, which are accounts that allow for both employee and employer contributions. Are you the employer, or do you have an HSA or FSA?
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