Page 96 - 2021-2022 New Hire Benefits
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health savings accounts FAQs p. 7 of 8
funds from one of these accounts, pay applicable 64. How much d have to contribute to my
taxes (and penalties) on the amount you withdraw, HSA, as an employer?
and then use the remaining funds to make a As much or little as you want while staying
contribution to your HSA. However, the amount belo the annual statutory limit on contributions
you contribute to your HSA is still limited by the to the account $3,600 for employees with self
annual contribution limits. only HDHP coverage or $7,200 for employees with
You may make a one-time transfer of IRA funds to family HDHP coverage 2021.
an HSA. The total qualified HSA funding transfer
cannot be more than the contribution limit for 65. Do contribution have t b made in
self-only or family HDHP coverage (plus catch-up equal a each month?
contribution if over the age of 55). The amount of No You can contribute in a lump or any
the IRA transfer reduces your HSA contribution for amounts or frequency you wish keep in
the year. If you fail to remain an eligible individual m·1nd that the funds belong to the employee after
for 12 months after the month of the transfer, the they are deposited.
amount of the transfer is included in income and
subject to a 10 percent additional tax. 66. As an emp d have to contribute the
same amount to every emp HSA?
60. Can I roll funds in my Archer MSA into my Employer contributions must be "comparable", that
HSA? is they must be in the same dollar amount or same
Yes, if you do so within 60 days of withdrawing percentage of the employee's deductible for all
the funds from the Archer MSA. employees with the same category of coverage
- for this purpose, generally categories of coverage
61. What happens to the money in my HSA when are either "self-only" or "family", although consult
I die? the comparability regulations regarding the ability
What happens depends on how the HSA is to subdivide the family category . You can also vary
designed. If your spouse is designated as the the level of contributions for "fulltime" vs.
beneficiary by you, your spouse becomes the owner "part-time" employees, and employees covered by
of the HSAwhen you die. \f you provide that it goes a c bargaining agreement are not covered
to your estate or other entity, the value of the HSA by the comparability rules health benefits were
at death is income to the estate or other entity. part of the agreement. You do not need t consider
employees who do have HDHP coverage as they
Employer participation in HSAs are not eligible for HSA contributions.
62. As an employer, do I own my employees' 67. Our offers benefits a
HSAs? Can I control how they spend the Section 1 p d contributions have t be
money in them? under thes plans as well? Section
No. You do not own your employees' HSAs. The 125 p (also as "salary reduction" or
employee fully owns the contributions to the "cafeteria" plans) must meet
account as soon as they are deposited, just as a different s of rules Under these plans,
with a personal checking or savings account to (both from employer and/or
which you would deposit their compensation. employee) must meet "nondiscrimination" rules.
T require the employer to ensure that
63. My employees want to contribute to their contributions do favor higher compensated
HSAs but want to make sure they get a tax employees.
benefit out of doing so. How does that work?
Employee contributions can be made to HSAs 68. Our company wants to offer "matching"
on either after-tax or pre-tax basis. If made on contributions, can we d that?
an after-tax basis they should be counted as an Yes, bu your company can only offer
above-the-line deduction on their tax return, "matching" through a 125
effectively making their contributions tax-free. plan. Remember the non-discrimination rules
If they want to make the contribution pre-tax it still apply.
can be done through a Section 125 (also called a
"salary reduction" or "cafeteria plan").
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