by daziumdesign@gmail.com | Sep 8, 2021
Any new plan year funds will pay first and the carryover funds will pay second. Employees get the best use of their funds by having the new plan year pay first, and the carryover funds pay second.
by daziumdesign@gmail.com | Sep 8, 2021
- Dependent under the age of 13; or
- Dependent or spouse of employee who is mentally or physically disabled and whom the employee claims as a dependent on his or her Federal Income Tax return.
by daziumdesign@gmail.com | Sep 8, 2021
You have until the end of the run-out period to submit claims for the reimbursement of eligible expenses incurred during the previous plan year. Funds that remain unused after the run-out period would return back to your employer.
by daziumdesign@gmail.com | Sep 8, 2021
An HRA is a reimbursement account set up and funded by your employer to cover eligible healthcare expenses as defined in the HRA Summary Plan Document. Unlike a healthcare FSA where the IRS defines the eligible services, your employer defines the services eligible for reimbursement from an HRA. Typically, an employer will reimburse deductible, coinsurance and copay expenses from your HRA but not services such as medical, dental or over the counter drugs. An HRA can also cover all or a portion of your prescription drug expenses. Check your employer’s HRA Summary Plan Document to see what types of services are covered under the HRA being offered by your employer.
by daziumdesign@gmail.com | Sep 8, 2021
The IRS sets the maximum contribution limits for the HSA each year. The maximum annual contribution limit for 2018 is $3,450 if you are enrolled in Individual coverage and $6,850 if you are enrolled in Family coverage. Once you are over the age of 55, you can contribute an additional $1,000 above the standard annual maximum. (Note: if both spouses are over the age of 55, each spouse would need have their own HSA to contribute the $1,000 catch-up)
If your HDHP was effective on January 1st, the total amount you can contribute to your account is the maximum contribution amount set by the IRS. If your HDHP is effective after the first day of the month, you may make or receive a full year’s contribution to your HSA for partial year coverage as long as you maintain your HDHP enrollment for 12 months. If enrollment is less than 12 months, the tax benefit is lost and a 10% penalty is imposed.