Health Reimbursement Account - Contributions

Contributions

Health Reimbursement Accounts are notional accounts; no funds are expensed until reimbursements are paid. Through health reimbursement arrangements, employers reimburse employees directly only after the employees incur approved medical expenses. According to the IRS, an HRA "must be funded solely by an employer," and contributions cannot be paid through a salary reduction agreement (i.e., a cafeteria plan). There is no minimum or maximum contribution limit on the employer's contributions to an HRA.