More About the Health Reimbursement Account
A Health Reimbursement Account, or HRA, is a tax-advantaged account the university will establish for you. It will be administered by MyCafeteriaPlan, our flexible spending account administrator. For the next three years, beginning with the first month following your retirement, the university will credit your HRA with $5,000*. October 1 for staff and January 1 for faculty. You can use the money in the account to pay for eligible health expenses, such as purchasing coverage outside the university and paying for deductible, copayment and coinsurance costs for medical services and prescription drugs.
Any amount remaining in your HRA at the end of the year will roll over and can be used in future years. At the end of the three-year period, you will have an additional 9 months to incur expenses. Then, you have until the end of year 4 to submit all reimbursements. HRA funds remaining after that 12-month period will be forfeited. For a list of eligible expenses, please refer to IRS publication 502, which can be found at https://www.irs.gov/pub/irs-pdf/p502.pdf.
High Deductible Health Plan
Per IRS guidelines, individuals covered by a High Deductible Health Plan (HDHP) and an HRA are not permitted to make contributions to a Health Savings Account (HSA) after leaving the university.
Don’t worry! In addition to an HRA account, you can access funds in your HSA for qualified medical expenses.
*myCafeteriaPlan will assess a $3.50 administration fee per month.
This information provides you with details of the Voluntary Retirement Incentive Program available from Wright State University. More complete information about the offer can be found in the official plan documents. If there are any differences between this information and the official plan documents, the official plan documents shall govern.