One Person - Health Reimbursement Arrangement
One Person - Health Reimbursement Arrangement - Image 2

One Person – Health Reimbursement Arrangement

$425.00

A One-Person Health Reimbursement Arrangement (HRA) is a powerful and tax-efficient way for churches—to cover healthcare costs while maximizing tax savings. With an HRA in place, the church establishes a formal plan that allows them to reimburse an employee for a wide range of qualified medical expenses.

These reimbursable expenses can include:

  • Health insurance premiums (individual or family coverage)
  • Co-pays and deductibles
  • Prescription medications
  • Vision care, including exams, glasses, and contacts
  • Dental treatments such as cleanings, fillings, and orthodontics
  • Chiropractic care and other eligible therapies
  • Long-term care services
  • Medically necessary over-the-counter medications (subject to plan guidelines)

The church sets the reimbursement limits and plan design, giving flexibility and control over healthcare spending. As expenses are incurred, the HRA reimburses the employee tax-free, provided they meet IRS-qualified medical expense criteria.

One of the most valuable advantages of an HRA is its favorable tax treatment:

  • Reimbursements are tax-free to the employee, increasing their effective compensation without increasing tax burden.

The church can significantly lower benefit costs compared to traditional group health insurance, while the employee receives a more customized and a benefits package.

Why Set Up a Section 105 HRA?

By establishing a Section 105 HRA through Clergy Financial Resources, you can legally reimburse yourself or your staff for:

  • Individual health insurance premiums
  • Out-of-pocket medical, dental, and vision expenses
What Happens Next?

Getting started is simple and guided every step of the way:

Step 1: Complete the Enrollment Form
Provide your information so we can understand your needs and design the right plan structure for you.

Step 2: Plan Review by a Benefits Advisor
A knowledgeable advisor will carefully review your submission to ensure everything is complete and compliant.

Step 3: Receive Your Customized Plan Package
Once approved, we will prepare and deliver all necessary documentation, including:

  • Official Plan Document
  • Summary Plan Description (SPD)
  • Required forms and compliance materials
  • Clear, easy-to-follow setup and signing instructions
    Do You Need Ongoing HRA Plan Support?

    Click here to enroll

    Maintaining an HRA plan requires more than just setup—it requires ongoing attention to compliance, documentation, and administration. Our annual HRA support services ensure your plan stays current, compliant, and running smoothly. From required updates and employee documentation to guidance on reimbursements and IRS regulations, we provide year-round expertise so you can focus on your mission with confidence.

     

    Options

    Type of HRA Plan *

    Effective Date: *

    Waiting Period *

    Benefit Limits *

    Choose your Benefits *

    Please designate the annual limit on expenses to be reimbursed: *

    Description

    HRA Plan Includes:

    Resolution to Adopt a Plan
    This document includes formal meeting minutes that record the church’s decision to establish and adopt the HRA as an official employee benefit. It serves as an important compliance record demonstrating that the plan was properly authorized.

    Customized Plan Document
    Each HRA Plan Document is individually prepared and tailored to your church’s specific structure and needs. This document outlines the rules, benefits, and terms of the plan and is maintained on file for compliance purposes, including potential IRS or regulatory review.

    HRA Summary Plan Description (SPD)
    The SPD is a user-friendly guide designed for employees. It clearly explains key aspects of the plan, including its purpose, eligibility requirements, and enrollment process. It also contains all federally required disclosures, such as:

    • Plan year start and end dates
    • Employer identification (Federal ID number)
    • Designated agent for legal service of process
    • Information related to COBRA, FMLA, and Department of Labor (DOL) requirements

    Election and Claim Forms
    These personalized forms are customized for your church and include:

    • An Election Agreement for employees to formally participate in the plan
    • A Claim Form for submitting eligible medical expenses for reimbursement
      These documents streamline the reimbursement process and help ensure proper recordkeeping.

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