HSA Archive
| Beneficiary Options |
| Compliance Points |
No archived content available.
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| Articles |
No archived content available.
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| Q&A |
2008
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Distributions |
| Compliance Points |
2008
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| Articles |
No archived content available.
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| Q&A |
2008
2007
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Eligibility/Establishment and Contributions |
| Compliance Points |
2008
2007
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| Articles |
2008
2007
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| Q&A |
2008
2007
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Investments |
| Compliance Points |
No archived content available.
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| Articles |
No archived content available.
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| Q&A |
No archived content available.
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Legislation/Regulation |
| Compliance Points |
No archived content available.
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| Articles |
2007
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| Q&A |
No archived content available.
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Miscellaneous |
| Compliance Points |
2008
2007
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| Articles |
2007
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| Q&A |
2008
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Reporting |
| Compliance Points |
2008
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| Articles |
No archived content available.
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| Q&A |
2008
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Rollovers and Transfers |
| Compliance Points |
2008
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| Articles |
No archived content available.
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| Q&A |
2008
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Eligibility/Establishment and Contributions Compliance Points
07/04/2008 - IRS Answers More HSA Questions In Notice 2008-59
In this latest release (Notice 2008-59), the IRS answers questions regarding eligibility, high-deductible health plans, HSA contributions and distributions, prohibited transactions, and HSA establishment and administration.
06/10/2008 - IRS Releases HSA Guidance
Recent IRS guidance implements rules enacted by the 2006 HOPE Act and specifically address issues related to qualified HSA funding distributions from IRAs (Notice 2008-51) and HSA annual contribution limits (Notice 2008-52).
We are currently assessing the impact on our products.
05/19/2008 - IRS releases HSA COLAs for 2009
For Health Savings Account (HSA) eligibility, health insurance plans must have deductibles that meet minimums specified by the IRS and annual out-of-pocket expense limits that do not exceed IRS-specified amounts. Regular HSA contributions cannot exceed an individual's annual limit. Each of these values is subject to cost-of-living adjustments (COLAs). IRS Revenue Procedure 2008-29 provides the 2009 inflation adjusted amounts (COLAs) for HSAs.
Eligibility/Establishment and Contributions Compliance Points
12/07/2007 - IRS Releases New Model HSA Documents
On November 27, 2007, the Internal Revenue Service released new model contracts for health savings accounts (HSAs). Form 5305-B, Health Savings Trust Account and Form 5305-C, Health Savings Custodial Account have been updated to incorporate changes from the Health Opportunity Patient Empowerment (HOPE) Act of 2006. The changes address increased contribution limits as well as new methods for funding an HSA using dollars from an IRA, a health flexible spending arrangement, or a health reimbursement arrangement. We will be updating our HSA documents to incorporate changes in the model contracts.
Eligibility/Establishment and Contributions Articles
| 01/24/2008 |
Connection between HSAs and other health care cost control accounts |
Eligibility/Establishment and Contributions Articles
| 10/12/2007 |
Variables affect HSA contribution limit determination |
Eligibility/Establishment and Contributions Q&A
| 08/06/2008 |
If an employer contributes amounts to an employee's HSA that exceed the maximum annual contribution due to an error, can the employer recoup the excess amounts? |
| 07/23/2008 |
If an employer contributes to the HSA of an employee who was never an eligible individual, can the employer recoup the contribution amounts? |
| 07/09/2008 |
How do the maximum annual HSA contribution limits apply to an individual with family high-deductible health plan (HDHP) coverage if the family HDHP covers spouses or dependent children who also have coverage under a non-HDHP, Medicare, or Medicaid? |
| 06/25/2008 |
A married couple has a family-coverage high-deductible health plan (HDHP). The husband has turned age 65 and is going to enroll in Medicare. His wife is not yet eligible for Medicare. Can she contribute to an HSA? |
| 06/18/2008 |
Can an individual take a qualified health savings account (HSA) funding distribution from more than one IRA as long as he/she doesn't exceed the contribution limit? |
| 05/28/2008 |
Is it a prohibited transaction for an HSA custodian/trustee to offer a cash incentive for establishing an HSA with that custodian/trustee? |
| 02/06/2008 |
Can an individual still establish an HSA for 2007? |
| 01/09/2008 |
An individual has a family-coverage high-deductible health plan. Can the maximum contribution be split between 2 HSAs, one for the policy holder and one for his/her spouse, or does it all have to go into one HSA? Can the spouse make a catch-up contribution if he/she is age 55 or over, or may catch-up contributions only be made on behalf of policy holders? |
Eligibility/Establishment and Contributions Q&A
| 12/26/2007 |
When funding an HSA for employees, an employer you must contribute the same percentage of the deductible or same dollar amount for each employee in the same category. Do the rules allow employers to define categories by number of years of service with the company? |
| 12/12/2007 |
How does the new legislation allowing a one-time transfer from an existing IRA affect an HSA? Are HSA owners still limited to the maximum contribution amount? Can a husband and wife each transfer money from their IRA to an HSA if they have family high-deductible health plan coverage? |
| 12/05/2007 |
One of our IRA owners wants to take advantage of the rule that allows a one-time tax-free movement of IRA assets to an HSA. How do we report that? |
| 11/28/2007 |
May an employer recoup from an employee’s HSA any portion of the employer’s contribution to the employee’s HSA? |
| 10/03/2007 |
An individual opened a joint HSA for himself and his spouse. They have separate high deductible ($2,500/each) health insurance policies. Do they need separate HSAs? Also, can they pay for eyeglasses and contact lenses out of an HSA? |
| 09/20/2007 |
Are health savings account (HSA) contributions through payroll deduction in an employer’s Section 125 cafeteria plan excludable from income? |
Rollovers and Transfers Compliance Points
07/04/2008 - IRS Answers More HSA Questions In Notice 2008-59
In this latest release (Notice 2008-59), the IRS answers questions regarding eligibility, high-deductible health plans, HSA contributions and distributions, prohibited transactions, and HSA establishment and administration.
Rollovers and Transfers Compliance Points
Rollovers and Transfers Articles
Rollovers and Transfers Articles
Rollovers and Transfers Q&A
| 03/26/2008 |
Are rollover and transfer contributions to health savings accounts (HSAs) permitted? |
Rollovers and Transfers Q&A
Distributions Compliance Points
07/04/2008 - IRS Answers More HSA Questions In Notice 2008-59
In this latest release (Notice 2008-59), the IRS answers questions regarding eligibility, high-deductible health plans, HSA contributions and distributions, prohibited transactions, and HSA establishment and administration.
05/02/2008 - Relief for Certain Direct Deposits of Economic Stimulus Payments
Individuals who have Economic Stimulus Act payments made by direct deposit to their individual retirement accounts (IRAs), Coverdell education savings accounts (CESAs), or health savings accounts (HSAs) may remove the payments without incurring any adverse tax consequences.
Under IRS Announcement 2008-44, an individual may withdraw an amount no greater than the amount of the directly deposited Economic Stimulus Payment. Withdrawals occuring no later than the taxpayer’s income tax return due date for 2008, plus extensions (for a CESA, the later of May 31, 2009, or the taxpayer’s income tax return due date for 2008, plus extensions), will not be subject to federal income tax nor to any penalty tax.
Financial organizations should report the deposits and distributions in the usual manner. Taxpayers will address the taxation of such distributions on their federal income tax returns.
Distributions Compliance Points
Distributions Q&A
| 07/09/2008 |
How do the maximum annual HSA contribution limits apply to an individual with family high-deductible health plan (HDHP) coverage if the family HDHP covers spouses or dependent children who also have coverage under a non-HDHP, Medicare, or Medicaid? |
| 04/02/2008 |
How are HSA distributions taxed after an HSA owner is no longer an eligible individual? |
| 03/19/2008 |
Does Reg. D (Reserve Regulations of Depository Institutions), apply to health savings accounts (HSAs)? |
| 03/05/2008 |
An HSA owner is age 63. His wife is age 62. His current HSA balance is $5,000. They are considering replacing their high-deductible health plan (HDHP) with traditional coverage. What options do they have with the HSA balance besides freezing the account or taking a taxable distribution? |
Distributions Q&A
| 11/28/2007 |
May an employer recoup from an employee’s HSA any portion of the employer’s contribution to the employee’s HSA? |
| 11/14/2007 |
When must an individual take an HSA distribution to pay or reimburse, on a tax-free basis, qualified medical expenses incurred in the current year? |
| 10/31/2007 |
If a health savings account (HSA) owner’s spouse or dependents are covered under a health insurance plan that is not a high deductible health plan (HDHP), are HSA distributions to pay their qualified medical expenses tax free? |
| 10/17/2007 |
May an individual who has not made an excess HSA contribution treat an HSA distribution that is not used for qualified medical expenses as the return of an excess HSA contribution? |
Beneficiary Options Compliance Points
Beneficiary Options Compliance Points
Beneficiary Options Articles
Beneficiary Options Articles
Beneficiary Options Q&A
| 02/20/2008 |
If a deceased HSA owner named his spouse as primary beneficiary, can the spouse beneficiary change the contingent beneficiaries named by the original HSA owner? |
Reporting Compliance Points
07/04/2008 - IRS Answers More HSA Questions In Notice 2008-59
In this latest release (Notice 2008-59), the IRS answers questions regarding eligibility, high-deductible health plans, HSA contributions and distributions, prohibited transactions, and HSA establishment and administration.
05/02/2008 - Relief for Certain Direct Deposits of Economic Stimulus Payments
Individuals who have Economic Stimulus Act payments made by direct deposit to their individual retirement accounts (IRAs), Coverdell education savings accounts (CESAs), or health savings accounts (HSAs) may remove the payments without incurring any adverse tax consequences.
Under IRS Announcement 2008-44, an individual may withdraw an amount no greater than the amount of the directly deposited Economic Stimulus Payment. Withdrawals occuring no later than the taxpayer’s income tax return due date for 2008, plus extensions (for a CESA, the later of May 31, 2009, or the taxpayer’s income tax return due date for 2008, plus extensions), will not be subject to federal income tax nor to any penalty tax.
Financial organizations should report the deposits and distributions in the usual manner. Taxpayers will address the taxation of such distributions on their federal income tax returns.
Reporting Compliance Points
Reporting Q&A
| 01/23/2008 |
Can a financial organization charge an annual fee and the cost of checks to an HSA? Is there any reporting required? |
Investments Compliance Points
Investments Compliance Points
Investments Q&A
Legislation/Regulation Compliance Points
Legislation/Regulation Compliance Points
Legislation/Regulation Articles
Legislation/Regulation Articles
| 12/19/2007 |
Regulatory and legislative changes are planned for 2008 |
Legislation/Regulation Q&A
Legislation/Regulation Q&A
Miscellaneous Compliance Points
07/04/2008 - IRS Answers More HSA Questions In Notice 2008-59
In this latest release (Notice 2008-59), the IRS answers questions regarding eligibility, high-deductible health plans, HSA contributions and distributions, prohibited transactions, and HSA establishment and administration.
01/17/2008 - HSA amendments strongly recommended
We previously announced that on November 27, 2007, the Internal Revenue Service (IRS) released new model contracts for health savings accounts (HSAs). Form 5305-B, Health Savings Trust Account and Form 5305-C, Health Savings Custodial Account were updated to incorporate changes from the Health Opportunity Patient Empowerment (HOPE) Act of 2006. These updated model contracts have now been included in Wolters Kluwer Financial Services–Bankers Systems HSA agreements. Only the IRS can require financial organizations to amend these contracts with existing HSA owners and the IRS has yet to issue an order requiring such amendments. However, given the significance of the IRS model contract changes–increased contribution limits as well as new methods for funding an HSA using dollars from an IRA, a health flexible spending arrangement, or a health reimbursement arrangement–we are strongly recommending that financial organizations begin using the new agreements immediately and send amendments to existing HSA owners within 30 days of adopting the new agreements.
Miscellaneous Compliance Points
12/07/2007 - IRS Releases New Model HSA Documents
On November 27, 2007, the Internal Revenue Service released new model contracts for health savings accounts (HSAs). Form 5305-B, Health Savings Trust Account and Form 5305-C, Health Savings Custodial Account have been updated to incorporate changes from the Health Opportunity Patient Empowerment (HOPE) Act of 2006. The changes address increased contribution limits as well as new methods for funding an HSA using dollars from an IRA, a health flexible spending arrangement, or a health reimbursement arrangement. We will be updating our HSA documents to incorporate changes in the model contracts.
09/14/2007 - Treasury Issues Guidance To Encourage Use Of Health Savings Accounts (HSAs)
Treasury Release JS-1061 includes an HSA Overview, with links to an HSA Fact Sheet, frequently asked questions, and press releases.
Miscellaneous Articles
| 09/14/2007 |
This general overview compares HSAs, health FSAs, and HRAs. |
Miscellaneous Q&A
| 08/06/2008 |
If an employer contributes amounts to an employee's HSA that exceed the maximum annual contribution due to an error, can the employer recoup the excess amounts? |
| 07/23/2008 |
If an employer contributes to the HSA of an employee who was never an eligible individual, can the employer recoup the contribution amounts? |
| 05/28/2008 |
Is it a prohibited transaction for an HSA custodian/trustee to offer a cash incentive for establishing an HSA with that custodian/trustee? |
| 04/16/2008 |
We’ve been told that we should use a power of attorney (POA) on a Health Savings Account (HSA) because you cannot have an authorized signer on a revocable trust account. Is that true? |
| 03/19/2008 |
Does Reg. D (Reserve Regulations of Depository Institutions), apply to health savings accounts (HSAs)? |
| 01/23/2008 |
Can a financial organization charge an annual fee and the cost of checks to an HSA? Is there any reporting required? |
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