Flexible Spending Account Administrations

Flexible Spending accounts are designed to allow employees to set aside money, on a pre-taxed basis in order to pay for their out of pocket medical, dental, vision, or dependent care expenses. This account is normally funded by the employee only but the plan does allow for employer contributions. This account is similar to an HSA or HRA, the main differences with this type of account are that it is not portable and all funds must be used by the end of the plan year or the contributed money is forfeited back to the employer.

Health Reimbersement Arrangements Administration

An HRA is a medical reimbursement plan that is paid for solely by the employer and not funded through salary reduction elections of the employee. When establishing the HRA (and then on an annual basis), the employer determines the maximum medical deduction amount per employee. Each employee receives the same amount.

Under an HRA plan, the employer reimburses the employee for qualified medical care expenses.