Type of account to which only the employer can contribute and in which workers do not put their own funds. It is used to pay medical expenses for employees. An employer may keep the money in the account if a worker quits. Also see consumer-directed health plan (CDHP) .
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HRAs are similar to FSAs in that they allow account holders and their dependents to pay for qualified out-of-pocket medical expenses with pre-tax dollars that are provided by an employer. Unlike FSAs, and at the end of the year unused funds remain in the account for later use.