An Individual HRA for Farmers and Ranchers is a Medical Reimbursement Plan based off of the Internal Revenue Code Section 105 and is available to almost all farmers and ranchers.
The Individual HRA allows farmers and ranchers to deduct all of their family health insurance premiums, including any out-of-pocket medical, dental, and vision expenses not covered by insurance. In 2006, the average Individual HRA client saved more than an incredible $3,200 per year in taxes!
In order to qualify for an Individual HRA, a farmer or rancher must be able to employ their spouse making the spouse an employee of the business. The farmer or rancher would then provide a reasonable wage for business duties, then fills out certain Internal Revenue Service forms. An Individual HRA makes the accounting procedures easy. Your accountant provides all of the administration and documentation required, helping you to develop and maintain a presentable Individual HRA.
A few of the expenses that could be deducted by using an Individual HRA are listed below:
• Health Insurance Premiums
• Qualified Long-Term Care Insurance Premiums*
• Vision & Dental Care
• Prescription & OTC Medications
• Co-Payments for Prescriptions and Office Visits
• More...
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