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Retiree Only HRA
A Retiree Only HRA (ROHRA) allows Employers to provide an HRA benefit to employees during retirement. The ROHRA is typically provided as a one-time, lump sum HRA contribution given after years-of-service thresholds are met to encourage employees to remain with the Employer longer.
A ROHRA is open to all Employers.
A ROHRA is open to all Employees.
Who Can Contribute
Only the Employer can contribute to a ROHRA. However, contributions can also be carried over from another HRA during employment or from unused PTO.
Advantages of a ROHRA
- Provides an attractive benefit to employees and helps boost
employment longevity. For example, if the ROHRA requires ten
years of service, employees may delay retirement to receive the
- Employer HRA contributions are tax deductible.
- Allows retirees to use Employer funds to pay for health expenses
during retirement, such as medical care and prescription drugs, as well as Medicare supplemental insurance and other types of
premiums. Essentially, this product allows retirees to use their HRA dollars when and where they need it most.
- HRA contributions are not subject to income or payroll taxes.
Want the Latest Contribution Limits and Guidelines?
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