AN EMPLOYER’S GUIDE TO HEALTH SAVINGS ACCOUNTS (HSAs)
May 9, 2014 · Print This Article
Introduction to the Guide
The following provides you, as an employer, with information about Health Savings Accounts (“HSAs”) under Internal Revenue Code (“Code”) Section 223. You should read this explanation to evaluate whether HSAs may be used either as an alternative to, or in addition to, health flexible spending accounts (“Health FSAs”) under Code Section 125 or Health Reimbursement Arrangements (“HRAs”) under Code Section 105(h).
To fully understand the requirements of these accounts, the following discusses their terms and compares their advantages and disadvantages over Health FSAs and HRAs in a question and answer format. In addition, a chart comparing both Health FSAs and HRAs with HSAs is included at the end of this explanation.
It is important to remember that this explanation is not intended to serve as a substitute for the advice of your lawyer, accountant, or other personal tax or financial advisor.
Hi, I have a client who renewed their 2014 HDHP using the same rates to a 2015 HDHP. Because the president says they can renew with exact rates until 2016. This HDHP had a $1250 deductable for single coverage. This qualified it for an HSA account in 2014. Their deductable is remaining the same in 2015 at $1250 but the HSA required deductable for 2015 is $1300. Does this mean that this client can no longer offer an HSA with their HDHP? There seems to be different interpretation of this rule. Please respond to me as I would like to be able to assist my client. Thank you!! Karen