Tuesday, April 21, 2015

Tip Tuesday! Health savings accounts: Little-known ERISA pitfalls to watch for

By Jared Bilski



With high-deductible plans coupled with health savings accounts (HSAs), becoming the plan of choice for many employers, HSAs are under the microscope more than ever before. 
That means now is probably a good time for a refresher on how the feds expect firms to administer HSAs as well as the types of activities that could get employees in trouble.

Key DOL requirements

Generally, HSAs are considered “welfare benefit plans,” which makes them exempt from ERISA’s many detailed requirements.
But to maintain that ERISA exemption, HSAs must meet certain DOL requirements (which can be found here and here).
First and foremost, the HSA must be “completely voluntary.”
Employers also can’t:
  • limit the ability of employees to move funds to another HSA
  • impose conditions on the use of HSA funds
  • make or influence any HSA investment decisions
  • represent that HSA is an employee welfare benefit plan, or
  • receive any payment or compensation in connection with the HSA.
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1 comment:

  1. Hello,

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    brushing and flossing everyday will set them to avoid complicated dental procedures in the

    later years of their life. Though a good dental care is very important for everyone

    irrespective of age,See more: healthy tips for employees

    Regards
    Loren Jasika

    ReplyDelete