HRA Administration Requirements

[Guest bayonne1]

My firm is considering openings up the administration side of the business to include the administration of HRA Plans (deductible only). Can anyone give one place to figure out what the admin requirements are other than software?

[Ron Snyder]

IRS Guidance regarding:

RR 2002-41

Notice 2002-45 Notice 2002-45

Also review Regs. 1.105, particularly 1.105-11.

You might also wish to review RRs 2003-43 and 2004-45.

[GBurns]

In adminstering an HRA there is the monitoring of eligibility, the accounting of contributions and the adjudication of claims. There is no such thing as "deductible only" since an HRA has no deductible.

Aside from software, there is hardware, personnel and legal issues. You need adequate software running on adequate hardware operated by knowledgeable people in a firm that has legal resources (for research and counsel) and which firm has adequate fiduciary liability etc coverage.

It is possible that your firm needs to raise its knowledge level quite a bit before considering the move.