Tag: HSA

Question: Can an employee enroll in FSA and still have an HSA account, just not contribute to it? Answer: Once an employee is eligible for and establishes an HSA, the funds remain his/her property and s/he can use those funds tax free as long as they are used only for qualified medical expenses. According to IRS…

On December 16, 2013, the Internal Revenue Service (IRS) released Notice 2014-1. The notice provides guidance on the rules for cafeteria plans, including health and dependent care flexible spending arrangements and health savings accounts, as they relate to the participation by same-sex spouses in certain employee benefit plans following the U.S. Supreme Court decision in…

Question: We have a group that will offer a High Deductible Health Plan (HDHP) effective December 1st of this year. The Employees get paid semi-monthly on the 5th for the pay period that ends on the last day of the previous month.  Starting with the December 5th paycheck, can an eligible employee start contributing to a…

Question:  Can an employee who terminates employment but still has money in his flexible spending account (FSA) continue to use it for claims?  Or could that money be rolled over into his current HSA with his new employer? Answer:  Internal Revenue Code §125 regulations governing health care flexible spending accounts (HC FSA) do not permit…

Question: Under the Affordable Care Act, can an employer increase the individual deductible of an HSA if they plan to increase the contribution amounts? Answer: The direct answer is that it would be permissible because the annual deductible may be as low as the “minimum annual deductible” or as high as the “maximum OOP limit” set by…