BASIC HRA
Frequently asked Questions

What is an HRA?

HRAs are individual Health Reimbursement Arrangements that employers can establish to pay employees’ medical expenses.

Who is eligible to set up and contribute to an HRA?

HRAs must be set up by an employer on behalf of its employees (self-employed individuals are not eligible for an HRA), and only the employer can contribute to an HRA.

Who controls the use of the funds in an HRA?

Employers decide how much money to put in an HRA, and employees can withdraw HRA funds for expenses allowed under the employer’s HRA plan documents.