Health Reimbursement Arrangement (HRA) Plans have been around since 1954 and allow businesses to reimburse employees for medical expenses that include insurance premiums, dental care, eye care, prescription drugs, and many other medical expenses tax free.
The benefit for establishing an HRA Plan is that it makes medical expenses tax deductible for the business and provides the benefit to employees, tax free. This means that a business can realize considerable tax savings that often reach into the thousands of dollars.
While there is some administration to the HRA plan, once it is established the ongoing administration is fairly simple. Think of how business expense reports are completed and you have the basics of how an HRA Plan works. And, as an NASE Member, you have access to all the forms and documents you need along with support from our team of experts to help you with any questions that you might have, like “What is an HRA?”.
While an HRA Plan can be established for any form of business such as an LLC or Corporation, the most popular business structure that can benefit from an HRA is a sole proprietorship or partnership. Because IRS rules don’t allow for a partner owner or sole proprietor to receive the same tax-free benefits as an employee, under an HRA Plan a sole proprietor or partner owner can hire their spouse as an employee and convert their medical expenses from personal after-tax expenses to a tax-free business deduction.
Because there are certain limitations to those who qualify for an HRA Plan, the NASE can help you determine if you can take advantage of the tax savings of an HRA Plan. Just click on the button below to determine your personal HRA insurance eligibility and benefits.
How much can you save by establishing an HRA plan? That will depend on the tax structure of your business and just how much your annual medical expenditures are. For an estimate of just how much you can save through an HRA plan, click on the calculator button below, enter some basic information and get an estimate of how much your tax savings might be with HRA insurance.
While other services that provide HRA administration charge hundreds of dollars for their services, as an NASE Member you get all the documentation to administer your plan and access to the team of HRA plan professionals included in your NASE Membership.
If you have any questions on how an HRA Plan works, what is an HRA, how HRA insurance might benefit you, or if you would like a personal evaluation call the NASE HRA consultants at 888-650-6273 or email email@example.com.