Certified Financial Consultant (CFC) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Certified Financial Consultant Exam. Enhance your understanding with detailed questions, hints, and explanations. Boost your confidence for the CFC test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Who typically sets the rules for contributions to an HRA?

The employee.
The employer.
The state government.
The insurance carrier.

The correct answer is: The employer.

Contributions to a Health Reimbursement Arrangement (HRA) are typically set by the employer. This is because HRAs are employer-funded accounts that reimburse employees for qualified medical expenses. The employer determines the amount of money contributed to the HRA and establishes the rules regarding the use of those funds as part of their employee benefits package. This employer control allows for flexibility in how much and under what conditions reimbursements are made, taking into account the overall health benefits strategy of the organization. Employees and other parties do not have the authority to set these rules or contributions; their role is to utilize the benefits provided as per the guidelines established by the employer.