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Small Business Employee Benefits and HR Blog

Section 105 HRA

November 9, 2012
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Health Reimbursement Accounts or Health Reimbursement Arrangements (HRAs) are Internal Revenue Service (IRS)-sanctioned employer-funded, tax advantaged employer health benefit plan that reimburses employees for out of pocket medical expenses and individual health insurance premiums. Using a Health Reimbursement Account yields "tax advantages to offset health care costs" for both employees as well as employers.

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