waid10 Posted July 22, 2021 Share Posted July 22, 2021 Hi. How do you handle the contribution calculation for an HRA when a participant makes a mid-year change in coverage? We (the employer) provide a $1,500 HRA contribution for Employee + 1 (spouse or child) coverage and a $750 contribution for Employee Only coverage. We have a participant that changed from Employee + 1 to Employee Only coverage on April 1st. Is the calculation simply pro rated for the remainder of the year? Here is an illustration of my thought process: $1500 divided by 12 months = $125 per month for January - March = $375.00 For remainder of the year, $750 divided by 12 months = $62.50 per month for April - December = $562.50 $375.00 + $562.50 = $937.50 Is this the correct approach? Link to comment Share on other sites More sharing options...
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