Which of the following statements accurately reflects employer's options regarding HRAs?

The correct response indicates that employers have the flexibility to decide whether to allow unused funds in Health Reimbursement Arrangements (HRAs) to accumulate for future use. This aspect is a key feature of HRAs, as the employer has the discretion to establish the specific rules regarding the accumulation and expiration of funds. By choosing to allow accumulation, employers can provide additional benefits to employees, but it is not mandatory.

In contrast, the requirement that employers must allow funds to accumulate indefinitely or that they are prohibited from withdrawing unused funds after employment termination limits the employer's discretion. Additionally, while HRAs are primarily intended for medical expenses, there are no strict requirements that force employers to limit the use of HRA funds only for such purposes. Therefore, these options highlight the flexibility and authority employers have in designing their HRA plans, which makes the correct answer particularly relevant.