What happens to HRA balances when employment ends?

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Multiple Choice

What happens to HRA balances when employment ends?

Explanation:
HRA funds are owned by the employer and are not portable to the employee. When employment ends, any unused balance generally does not transfer to a new employer or to the employee; it stays with the employer under the plan rules (often being forfeited by the employee and retained by the employer). The exact treatment is defined in the plan document, but the standard rule is that the balance remains with the employer.

HRA funds are owned by the employer and are not portable to the employee. When employment ends, any unused balance generally does not transfer to a new employer or to the employee; it stays with the employer under the plan rules (often being forfeited by the employee and retained by the employer). The exact treatment is defined in the plan document, but the standard rule is that the balance remains with the employer.

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