All of the following statements are accurate regarding health reimbursement accounts EXCEPT:

Question

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HRAs (Health Reimbursement Accounts) are employer-funded group health plans from which employees are reimbursed tax-free for qualified medical expenses up to a fixed dollar amount per year. Employees cannot contribute to HRAs, only employers can. These accounts are indeed tax-deductible to the employer and can be used to pay for qualified medical expenses even after retirement. However, employees can have either an HRA or an HSA (Health Savings Account) if they are covered by a High Deductible Health Plan (HDHP), but having both simultaneously is subject to specific IRS rules that limit the circumstances under which both can be held. This makes the statement about employees being able to have both an HRA and an HSA without qualification inaccurate.

All of the Following Statements Are Accurate Regarding Health Reimbursement