City of Sarasota. Introduction to Health Reimbursement Arrangements “HRAs”. Presented by: Mark R. Wilkerson, CFP HRA Consultant December 1, 2004. Topics. HRA Team Growing Need HRA Basics HRA Advantages Eligible Expenses Trust Structures
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City of Sarasota
Introduction to Health Reimbursement Arrangements “HRAs”
Mark R. Wilkerson, CFP
December 1, 2004
Adoption Implementation and Ongoing Administrative Process
Group Structures & Voting
Employer Funding Sources
Aggressive HRA Plan Designs
VALIC National HRA Plan
The projections listed above are the amounts that a Washington retiree and spouse could spend during their lifetime assuming retirement at age 60, participation in the State of Washington PEBB Uniform Medical Plan, living a normal life expectancy to age 84, assuming purchase of medical insurance and dental insurance for retiree and spouse, plus annual out-of-pocket expenditures of $500 on non-covered items. We assume 5% annual increases for premiums and non-covered out-of-pocket costs.
Current PEBB premiums before age 65 for retiree and spouse are $7,700 per year for medical insurance and $850 per year for dental insurance. Current PEBB Medicare supplement premiums are $3,500 per year for retiree and spouse.
What will my account be worth when I retire?
Monthly Employer Contribution
Balance at age 65 w/ 5% return
25% federal income tax
7.65% FICA tax
$40,000 benefit available
Turnkey Plan – Services Provided
New employee education
Audit/Tax forms filed
Questions and Answers