Loan & Distribution Specialist AimPoint Pension
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Compass
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Bates & Company, Inc.
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AimPoint Pension
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Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
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Regional Vice President of Sales The Retirement Plan Company
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HRA Contribution Calculation Following Mid-Year Change in Coverage
BenefitsLink Message Boards July 23, 2021 "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: $1,500 divided by 12 months = $125 per month for January--March = $375 For remainder of the year, $750 divided by 12 months = $62.50 per month for April--December = $562.50 $375 + $562.50 = $937.50 Is this the correct approach?" |
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