October 21, 2015 by Tony Novak
It is possible to run a tax-free Health reimbursement Arrangement in this post-ACA environment. Follow these simple rules:
- The plan must be in writing.
- Use a professionally prepared plan document. (We can provide a sample prototype document but you should rely on your own attorney).
- Integrate the plan document with a qualified employer-provided group health insurance contract. Name the policy in the Appendix
- Limit HRA eligibility to those employees (and their dependents) who are actually enrolled in the group insurance plan.
- Limit carry forward benefits that flow from year to year.