JUNE 2007 Newsletter
Bulletin Briefs . . . . . . . . .
HSA Contributions Limits to Increase in 2008
The IRS says the maximum contribution that can be made in 2008 for employees with single coverage will be $2,900, and family coverage, $5,800. Additionally, the maximum out-of-pocket expense (including deductibles) that employees with single coverage can be required to pay will rise to $5,600 and $11,200 for family coverage. The new limits reflect increases in the cost of living.
♦ When Should Employers Make ‘Comparable’ Contributions?
Under the recently proposed IRS-HSA comparable contribution regulations, employers who contribute to HSAs outside of cafeteria plans are required to notify employees in writing by January 15 each year that any employee who establishes an HSA by the last day of February, and who notifies the employer of this fact, will receive a comparable contribution to the HSA for the prior year. The employer’s contribution must be made no later than April 15 and must include reasonable interest. An employer may accelerate HSA contributions in a given year in the case of employees who have incurred qualified medical expenses which exceed the employer’s contributions to date. However, these contributions must be available to all eligible employees on an equal and uniform basis throughout the year. Also, the employer must establish reasonable uniform methods and requirements for acceleration of contributions and determination of medical expenses.
Click here for entire June Newsletter
HRinsider® bulletin
is brought to you each month courtesy of Fredericks Benefits, a UBA® member firm. For more information, contact us at fredericksbenefits.com .
