Health Savings Account Blog

Employee has not established HSA by December 31

The final regulations provide a means for employers to comply with the comparability requirements with respect to employees who have not established an Health Savings Account (HSA) by December 31, as well as with respect to employees who may have established an HSA but not notified the employer of that fact. To comply with the comparability rules for a calendar year with respect to such employees, the employer must comply with a notice requirement and a contribution requirement.

The final regulations also address the acceleration of employer contributions to employees’ Health Savings Accounts. For any calendar year, an employer may accelerate part or all of its contributions for the entire year to the Health Savings Accounts of employees who have incurred, during the calendar year, qualified medical expenses exceeding the employer’s cumulative HSA contributions at that time.

The regulations affect employers that contribute to employees’ Health Savings Accounts. The regulations are effective on April 17, 2008, and apply to employer contributions made for calendar years beginning on or after January 1, 2009. However, employers may rely on this guidance beginning on or after April 17, 2008.

You can read the report at: http://www.ustreas.gov/press/releases/reports/hsa_comparable_contributions_4830.pdf

And you can find more government information on Health Savings Accounts at: http://www.health--savings--accounts.com/gov-info.htm