HRA for self-employed spouse, good idea or not?
February 28, 2014 2:46 PM   Subscribe

I've had a HRA administration company contact me selling their HRA administration plan. Is this a good idea for a spouse who is self-employed.

I've been working the numbers today for medical insurance for 2014. I'm full time employed with coverage through work. My self-employed wife is set up to be on the same plan with no employer contribution for her, this plan starts April 1st.

In my research, I'm getting the big picture of how my wife sets up an HRA for me, as a legitimate employee of her business, then the 7.65% social security tax is eliminated on income that goes towards medical expenses for the employee and the spouse.

I'm wondering if anyone can shed some light on this overall as a way to legitimately reduce tax burden on a small business person with a bronze plan insurance coverage? I get the big picture, just wanting some insight from people who are doing this.
posted by diode to Work & Money 2 users marked this as a favorite
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