employee pre-tax medical insurance premium that is reinbursed by another companies HRA; is this double dipping?

[Guest larry w]

I retired from a company that set up a HRA to reinburse me for medical insurance premiums purchased for me and my family through my wifes employer which is tax free. I was told to submit the payroll stub to MY employer and get reinbursed. What are the rules that would not allow this type of reinbursement. I'm not sure if this is s double dip.

[GBurns]

See Revenue Ruling 2002-3 and IRS Notice 2013-54. Premiums that are pre-taxed were never reimbursable.

[Guest larry w]

After review of the above stated rulings, it's still not clear if a tax free premium payment for medical premiums from emploer A, can be reinbursed by (another) employer B HRA which the disbursement is also tax free. At issue, is whether the two different emplyers are treated as one employer and therfore the reinbursement can not happen because this some how is ruled a double dip for tax savings?

Any more insight would be appreciated.

[lvena]

After review of the above stated rulings, it's still not clear if a tax free premium payment for medical premiums from emploer A, can be reinbursed by (another) employer B HRA which the disbursement is also tax free. At issue, is whether the two different emplyers are treated as one employer and therfore the reinbursement can not happen because this some how is ruled a double dip for tax savings?

Any more insight would be appreciated.

No double dipping allowed, sorry. See revenue ruling 2002-03 and 2002-80.

[GBurns]

Since the wording which explained that a pre-taxed premium is not reimbursable, was not clear to you, I suggest that you use Google and do search using terms like "double dipping health plan" and " Rev Rul 2002-3" so that you get other wording which should make it clearer to you.

By the way, being treated as one employer is irrelevant.

[IRA]

If you think double dipping is allowed, go ahead and do it. Then when you file your returns, let the IRS know - make it abundantly clear - that you double dipped and see what the IRS says. You might end up owing underpayment penalties, but who knows, maybe the IRS will agree with you.

[Clarifying Health]

Yes. The government considers this double dipping. If you are using an HRA (or other type of compliant premium reimbursement arrangement such as an HRP), you can technically be reimbursed for spousal plans, however you need to pay for the premiums after-tax and NOT pre-tax. Hope that helps!