What is one requirement for funds in a Health Reimbursement Account?

For funds in a Health Reimbursement Account (HRA) to be utilized appropriately, they must be used for qualified medical expenses. This requirement ensures that the funds are allocated toward expenses that qualify under IRS guidelines, which typically include costs such as medical care, prescription drugs, and other healthcare-related expenses that would generally be deductible under a high-deductible health plan.

This stipulation is key to both maintaining the tax-advantaged status of the funds and ensuring that employees benefit from the intended uses of the HRA. The focus on qualified medical expenses is designed to promote healthcare spending that improves the overall health and well-being of employees, consistent with the goals of such reimbursement arrangements.

In contrast, the other options do not align with the fundamental purpose and regulatory framework governing HRAs. The flexibility in utilizing HRA funds strictly for healthcare-related expenses underscores the need for accountability and responsible use of the benefits provided to employees.