Important reminders regarding your HRA account balances
If a retiree or dependent runs out of HRA money by the end of the year, Aon/Alight has always paid the balance of unreimbursed expenses submitted for reimbursement as soon as there is fresh credit in the HRA. (On January 1, each retiree’s and dependent’s account gets credited with the amount they are eligible to be reimbursed for over that year; the money actually stays with USG until Alight reimburses the retiree and then USG reimburses Alight that month.) It is to the retiree’s advantage to get THEIR money as soon as possible.
At the end of 2024, the retiree’s total medical expenses will be what they will be (as always, they’re reportable on one 2024 tax return), only some of which will have been reimbursed from one’s HRA. Spend the HRA money FIRST! It’s tax-sheltered and so taxes aren’t eating into the money going to pay for medical expenses. THEN spend other money for medical expenses and taxes. The HRA is YOUR tax-free money. SPEND IT. That’s why it’s called Your Spending Account (YSA), not Your Savings Account. Don’t save it for a rainy day!!!
For retirees and dependents who don’t run out of HRA money by the end of the year, FIND unreimbursed medical expenses to get reimbursed for. One can go back all the way to 2014 if necessary! Here’s a complete list of eligible expenses and rules about expenses.
At very least, every retiree and dependent on Medicare should scan the Social Security Administration – Important Information letter, dated November 22, 2023, listing Medicare amounts for 2024, and submit it to Alight. Medicare Part B, Part B IRMAA, Part D, and Part D IRMAA are all eligible for reimbursement from Alight!
One way that campus retiree organizations can help retirees is by providing computer assistance on spending one’s HRA, ideally in collaboration with the campus HR, but independently if necessary.
Retirees, go spend YOUR Spending Account Your YSA/HRA can NOT be inherited by your kids, your grandkids, or even your pet! 😊 SPEND IT!!!
If retirees or dependents have any questions, they can email me at dmarks@valdosta.edu.
Thanks,
Dennis
Dennis W. Marks
Past Chair, VSU Retirees Association
VSU Representative on USG Retiree Council
Past Chair, USG Retiree Council
USG Open Enrollment Communications Committee