What does this mean for me?
Did you know you can let your HRA funds roll over each year and use those funds for certain expenses when you retire? If you are someone who is doing this, you no longer have to worry about exceeding the previous account balance cap of $8,000. The cap has been lifted, so you no longer have to keep your account balance at $8,000 or below. You can keep accumulating funds through your years of service at the Agency.
What do you mean use this money in retirement?
If you take a bona fide retirement from Heartland AEA (draw IPERS), you have access to this money for up to five years after you leave employment or until you spend all the funds in the account, whichever comes first. In retirement, you can use this money towards any of your out-of-pocket medical, dental, vision and/or prescription drug costs. This is the only time you can also use the money towards your insurance premium costs.
Why is no cap important?
If you are starting to consider retirement before the age of 65, this change might be helpful when considering how much money you might need to save up to pay for insurance premiums, especially from your retirement date until you go on to Medicare. If you have any questions about the change, contact Juliette Houseman, Benefits Specialist.
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