Pay for Your Health Insurance
Health Reimbursement Arrangement
And save thousands in taxes every year, guaranteed!
Paying for your HSA-qualified health insurance plan through an HRA can save you $2,500 or more every year.
A health reimbursement arrangement, or HRA, enables self-employed individuals to reimburse medical expenses, including health insurance premiums, from the business as a tax-free fringe benefit. Instead of taking a deduction for health insurance on your IRS form 1040, you can now count it as a business expense on your schedule C!
HRAs are available to C-corps, S-corps, and Schedule C sole proprietors whose spouses could work for the business. If you are self-employed, learn how an HRA can work for you by visiting our Section 105 HRA Plans For The Self-Employed page.
Small business owners with employees can also benefit by establishing an HRA. Through an HRA you can reimburse your employees for individual health insurance premiums, which typically costs less than half of what group coverage does. Visit our 105 HRA Plans for Small Business Owners page to learn how you can cut your health insurance costs in half, while providing your employees with permanent coverage that is not tied down to their employment.
Section 105 is the part of the IRS code that establishes the rules for HRAs. While larger companies have used HRAs for years as a way to manage their healthcare expenses, smaller companies and self-employed individuals have often been intimidated by the rules and paperwork involved in setting this up.
www.FlexShop.info is proud to provide a simple an inexpensive solution that will make the process very easy and enable the "little guy" to take advantage of this important tax break.
How to Establish Your HRA
HRAŭs are simple to set up, and a cinch to administer. In fact, we have done almost all the work for you. Using our online application, you can set up your HRA easily and quickly online. A Document Consultant will contact you with questions and additional design options once we have received your basic information. Our Consultant review it for completeness and set up the required paper work - including Section 105 HRA Comprehensive Plan Document, Summary Plan Description, Administrative Forms, Administrative Handbook, and Resolution to Adopt the Plan.
If you are setting up the HRA for your family, there will be some questions that will establish an employer/employee agreement between you and your spouse. This will include general duties and the number of hours he or she works per week.
It will also ask you some questions to determine Eligibility Requirements. So, for instance, you could exclude employees that are under a certain age, work less than a specific number of hours per week, work less than 7 months a year, or have been with the company for less than a specific number of months.
You will then select which benefits the plan will reimburse. A list will be presented where you can check off which items you want to cover, including health insurance premiums, long-term care premiums, and out-of-pocket expenses.
Allow two to three weeks from the time of application for the all forms and documents to be completed and received sent to you. You can self-administer with our CoreDataAdministrative Software (for $69) or use our Online Administrative services (description of services and fee schedule available) to keep track of reimbursed expenses.
HRAŭs offer great flexibility and very creative ways to control healthcare dollars, with the same type of tax-advantaged plans used by the big corporations. It is a tax savings plan which gives you full business expense deduction, meaning you get a deduction on Federal, State and FICA taxes.
Set Up Your HRA Today
The cost to set up an HRA is a $299 one-time set up fee.
$299 Section 105 HRA Package Includes:
ŭ HRA Plan Document,
ŭ Section 105 HRA Summary Plan Description,
ŭ Election and Claim Form,
ŭ Administration Handbook,
ŭ $29 CD with Summary Plan Description and
ŭ Forms and Resolution to Adopt.
If you have any questions, you can
Speak to an Expert Certified in Flexible Compensation (CFC)
you can email your question if it's after hours.