HEALTH REIMBURSEMENT ARRANGEMENTS (HRAs)

Qualifying for an HRA…
HRAs are employer-established benefit plans. These may be offered in conjunction with other employer-provided health benefits. You can have complete flexibility to offer various combinations of benefits in designing your plan.

What are the Benefits of an HRA?...
Contributions by the employer are excluded from gross income. Reimbursements may be tax-free if paid for Qualified Medical Expenses. Any unused amounts can be carried over to the next year.

Amount of Contribution…
There is no limit on the amount of money that you can contribute and you can increase/decrease the amount each plan year.

Qualified Medical Expenses…
Expenses include: amounts paid for health insurance premium, amounts paid for Long-Term Care coverage and expenses that are not covered by another health plan.

With proper documents in place, businesses will not pay payroll taxes on the reimbursements and the benefits are tax free to the employee. So if you are a one-person or a Small Business, you can qualify and use this HRA to your advantage. Let us help you.


UP-DATES:

Health Saving Accounts (HSA)
Many are looking at these as another “Retirement Saving” plan. You should be using an HSA in order to have $$$$$ to pay for health expenses when you are covered by Medicare. IRS limits for 2019 Self-Only $3500, Family $7000.

Medicare Supplements and Part D
I just went through a major health issue and learned a lot of things about the medical/hospital systems. What I know now about the costs (one pill $15.00) fees, and all the medications that you get but may not need. The main thing I learned was that with my Medicare Supplements and Part D, I personally paid less than 10% of a $161,000 bill. What do you have?

We can assist you personally and/or your business with these issues.

Questions:
How is your 401(k) plan doing and what is it really costing you in fees and commissions? As a Fiduciary, what should you know? Ask us we can advise you.

Healthy San Francisco:
If your business is in The City and you are having issues with this program, we have some options that can help you---like an HRA.

Be well,
Bob