Health Reimbursement Account (HRA)

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The cost of healthcare during retirement is a growing concern. A Post-Employment Health Reimbursement Account (HRA) can help you bridge the gap between retirement and Medicare to assist with medical premiums and other medical costs.

How it Works

Your employer contributes your unused Paid Time Off (PTO) or sick pay to a HRA in your name. HRA contributions can only be made by your employer; no contributions are allowed by employees.

Your employer does not pay any FICA tax on HRA contributions, and you do not pay FICA, federal and state taxes.

When your employment ends, your HRA funds are returned to you tax-free to be used to pay for qualified medical expenses (per IRS Code Sections 105 and 106), for yourself, your spouse, or your legal dependents.

Why North Shore Bank?

You have direct access to our dedicated team of professionals via phone, email or in-person for one-on-one meetings.
HRA monthly maintenance fee is waived if you have your 457(b) account with North Shore Bank, or if you have a North Shore Bank checking account.

Investment Options

Certificates of Deposit^*

Provided by North Shore Bank

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Mutual Funds^*

Provided by Heartland Funds, a Wisconsin-based mutual fund company.

Forms and Resources

HRA Enrollment Form
Out-of-Pocket Medical Claim Form
(Web Form/PDF)
Recurring Insurance Premium Request Form
(Web Form/PDF)
Qualified Medical Expenses List
Frequently Asked Questions
ACH Authorization Form
Employee Change of Information Form
Asset Reallocation Form

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Our representatives may not give legal or tax advice. Please consult your attorney or tax advisor for answers to your specific tax questions.

FAQs

Distributions are not required at the time of retirement, but are required beginning in the year you attain the age of 72 years. However, you may elect to take your distribution at termination of employment as a lump sum, monthly, quarterly or annual payment. You may also choose to roll over your funds as permitted in your plan document. North Shore Bank will assist you in structuring your repayments to meet your individual needs and goals.

Yes, participation in a 457 plan does not preclude you from participating in other retirement plans.

The minimum deferral is $10.00 per pay period. The maximum deferral may change annually. As of tax year 2025, the contribution limit is $23,500. Employees age 50 and older are eligible for catch up contributions of an additional $7,500 with total allowable to $31,000.

Since the inception of the North Shore Bank Deferred compensation program, the bank has assessed no service charges or administrative fees for funds allocated to a North Shore Bank Certificate of Deposit. A small annual asset fee is incurred when funds are allocated to the mutual fund options.

Note:

Our representatives may not give legal or tax advice. Please consult your attorney or tax advisor for answers to your specific tax questions.
Your North Shore Bank 457(b) Plan can be funded by both FDIC insured North Shore Bank Certificates of Deposit (CDs) and/or non-Bank investments provided through TransAmerica Funds.
Investments held in North Shore Bank CDs are FDIC insured.
However, investments other than North Shore Bank CDs are NOT a deposit or other obligation of the Bank or its affiliates; NOT insured by the FDIC or any other agency of the United States; are subject to investment risk, including possible loss of value.