Question of the Week

Posted by BAS - 17 June, 2021

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Q.- We offer an HRA plan. Someone who is eligible for premium assistance under the American Rescue Plan Act is covered under our HRA. What amount of premium can we claim as a tax credit?

A.- The tax credit that may be claimed for providing subsidized coverage to an assistance-eligible individual participating in an HRA is 102% of the amount actually reimbursed to the participant. It is not the amount the individual would have otherwise paid for HRA coverage.

Topics: Health Reimbursement Accounts, HR & Benefit Plans, HR & Benefits News, Technology News


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