Managing a Health Savings Account (HSA) can be difficult and confusing. Employers and employees alike must understand the strict compliance regulations associated with these accounts. From understanding who is eligible to participate in an HSA to how much an individual is permitted to contribute, can cause confusion and ultimately lead to frustration.
The attached Benefits Brief is a great resource to help you better understand the compliance rules. The attached contains several frequently asked questions concerning the regulations pertaining to an HSA. It encompasses high-level information to answer questions like:
- What makes an individual eligible for an HSA?
- What other spending accounts can be used in partnership with an HSA?
- What are the 2020 contribution limits?
- What are the contribution regulations for mid-year enrollments into an HSA qualifying plan?
- What are the consequences of over-contributing into an HSA?
- What are the regulations around employer contributions including how much they should contribute and the frequency of employer contributions?
- What meets the requirements of a qualified medical expense?
Additionally, the Benefits Brief provides helpful links to additional resources that employers and employees can use for more information pertaining to HSA Internal Revenue Service regulations and tax implications. If you have questions regarding the attached brief or HSA compliance, please contact your Cowden team.