Administering a Health Flexible Spending Account (FSA) can be challenging, especially when employees request midyear changes to their elections due ...
The IRS has released the 2025 Patient-Centered Outcomes Research (PCORI) fee amounts for health insurers and self-insured health plan sponsors. The PCORI fee is due on July 31, 2025. For plan and policy years ending between October 1, 2024, and October 1, 2025, the PCORI fee is $3.47 per covered life, up from $3.22 for the previous year. This is a $.25 increase from the amount in effect for plan and policy years ending on or after October 1, 2023, and before October 1, 2024.
PCORI fees are calculated by multiplying the applicable dollar amount for the year by the plans or policy’s average number of covered lives. These fees, established by the Affordable Care Act (ACA), fund clinical effectiveness research.
Below is the fee amount per plan year.
For more information on the upcoming PCORI fee deadline please refer to the IRS’ PCORI fee FAQ
In today’s competitive job market, offering attractive employee benefits is essential for attracting and retaining top talent. One effective way to enhance your benefits package is by providing low-cost Health Savings Account (HSA) investment options. NueSynergy stands out as a leader in this space, having been named among the top HSA providers by Morningstar. Our innovative solutions not only support employee health but also promote financial wellness. Let’s explore the key benefits of integrating low-cost HSA investment options into your employee benefits strategy.
1. Investment Growth Potential
NueSynergy offers a diverse range of investment options within its HSAs, allowing employees to grow their savings over time. With low expense ratios and a selection of high-quality investment choices, employees can benefit from potential market gains while preparing for future healthcare costs. As previously mentioned in Morningstar, NueSynergy’s investment offerings include no Neutral- or Negative-rated funds, and 64% of its menu was Gold-rated as of August 2024. This investment growth can significantly enhance their financial security.
2. Flexibility and Accessibility
NueSynergy’s HSAs are designed to be user-friendly and accessible. Employees can easily manage their accounts online, making it simple to track contributions, investments, and withdrawals. This flexibility empowers employees to take control of their healthcare spending and investment strategies, fostering a sense of ownership over their financial health.
3. Attracting and Retaining Talent
Offering low-cost HSA investment options can set your company apart in the eyes of potential employees. As more individuals prioritize financial wellness in their job search, providing a robust benefits package that includes HSAs can enhance your employer brand. NueSynergy’s commitment to affordable and effective HSA solutions makes it an attractive choice for companies looking to improve their benefits offerings.
4. Promoting Financial Literacy
By integrating HSAs into your employee benefits, you also promote financial literacy among your workforce. NueSynergy provides resources and support to help employees understand how to effectively use their HSAs for both immediate medical expenses and long-term investment growth. This education empowers employees to make informed decisions about their healthcare and finances.
Incorporating low-cost HSA investment options through NueSynergy into your employee benefits package is a strategic move that can enhance employee satisfaction and loyalty. With the potential for tax savings, investment growth, and increased financial literacy, HSAs represent a win-win for both employers and employees. By prioritizing these benefits, you can create a healthier, more financially secure workforce.
The holiday season is a time for celebration, but it can also bring its share of stress—especially when it comes to travel. To help you stay healthy and prepared, here are the top five FSA (Flexible Spending Account) and HSA (Health Savings Account) eligible items you should pack for your holiday adventures.
A well-stocked first aid kit is essential for any traveler. Look for kits that include band-aids, antiseptic wipes, and other basic supplies. Many first aid kits are FSA/HSA eligible, ensuring you’re ready for minor injuries or ailments while on the road.
Protecting your skin is crucial, even in winter. Sunscreen is often FSA/HSA eligible and perfect for those sunny holiday destinations. Choose a broad-spectrum SPF to shield your skin from harmful UV rays, whether you’re skiing or lounging by the beach.
Over-the-counter pain relievers like ibuprofen or acetaminophen are must-haves for any trip. These items are typically FSA/HSA eligible and can help you manage headaches, muscle aches, or any discomfort that might arise during your travels, ensuring you can enjoy your holiday without interruptions.
A digital thermometer is a handy tool to have, especially during flu season. Keeping track of your health is easier with this essential item. Many thermometers qualify for FSA/HSA reimbursement, making it a smart addition to your travel kit.
If you suffer from allergies, packing your allergy medications is essential. Antihistamines and nasal sprays are often FSA/HSA eligible and can help you manage symptoms while traveling. Whether it’s pollen, pet dander, or dust, having your allergy meds on hand will keep you comfortable and ready to enjoy the festivities.
Traveling during the holiday season doesn’t have to be stressful, especially when you’re prepared. By packing these five FSA/HSA eligible items, you can ensure a healthier, more enjoyable trip. Remember, taking care of your health is the best gift you can give yourself this holiday season. Safe travels!
For a full list of FSA/HSA eligible items, click here.
When managing employee benefits, grasping the intricacies of Health Flexible Spending Accounts (FSAs) is essential, especially if your company is considering adding employer contributions like matching or seed contributions. You may be curious about how these contributions impact the IRS contribution limits.
Contribution Limits Overview
For plan years starting in 2024, the IRS sets the limit for health FSA salary reduction contributions at $3,200, which will increase to $3,300 in 2025. It’s important to note that this limit applies solely to contributions made through employee salary reductions.
Do Employer Contributions Count?
The good news is that nonelective employer contributions, such as matching or seed contributions, typically do not count toward this limit. However, there’s an important caveat: if employees can choose to receive these contributions in cash or as a taxable benefit, they will be considered salary reductions and will count toward the limit if contributed to the health FSA.
Compliance Considerations
Introducing employer contributions can also bring additional compliance challenges. For example, if contribution amounts differ among employees, your plan might violate the nondiscrimination rules outlined in the Internal Revenue Code.
Additionally, to qualify as an excepted benefit, the maximum benefit payable for the year must not exceed either twice the employee’s health FSA salary reduction election or the salary reduction election plus $500, whichever is greater. If employer contributions are included, it’s crucial to ensure they don’t push the health FSA beyond this maximum benefit threshold.
While employer contributions can enhance your benefits package, they require careful planning to maintain compliance with IRS regulations. By understanding how these contributions interact with the limits and other compliance issues, you can make informed decisions that benefit both your employees and your organization.
If you have any further questions or need assistance with your cafeteria plan, feel free to reach out!
Health Savings Accounts (HSAs) are not just for covering medical expenses—they can also be a powerful tool for long-term investment. Recently named as one of the Top HSA providers in 2024 by Morningstar, NueSynergy offers unique investment opportunities that can help you grow your savings while enjoying significant tax benefits. In this blog, we’ll explore how NueSynergy’s HSAs can be leveraged for investment purposes, providing a dual benefit of healthcare savings and wealth accumulation.
Tax Advantages of HSAs
One of the most compelling features of HSAs is their triple tax advantage:
Tax-deductible contributions: Contributions to an HSA are made with pre-tax dollars, reducing your taxable income.
Tax-free growth: Earnings from interest, dividends, and capital gains within the HSA are not taxed.
Tax-free withdrawals: Withdrawals for qualified medical expenses are tax-free.
These benefits make HSAs more advantageous than traditional retirement accounts like 401(k)s and IRAs.
Investing with NueSynergy’s HSAs
NueSynergy stands out for its investment-friendly features. Here are some key points to consider:
1. High-Quality Investment Options
NueSynergy offers an all-ETF lineup, which is the cheapest among its peers, with an average expense ratio of just 0.05%. This low-cost structure allows you to maximize your investment returns. Additionally, as stated in Morningstar, NueSynergy’s investment offerings include no Neutral- or Negative-rated funds, and 64% of its menu was Gold-rated as of August 2024. This high-quality selection ensures that your investments are in reliable and well-performing funds.
2. No Minimum Balance Requirements
NueSynergy does not require a minimum balance to start investing, making it accessible for all account holders. This flexibility allows you to begin investing as soon as you open your HSA, without having to wait until you accumulate a certain balance.
Strategies for Maximizing Investments with NueSynergy
To make the most of your HSA as an investment tool with NueSynergy, consider the following strategies:
1. Maximize Contributions
For 2025, the maximum HSA contribution is $4,300 for individuals and $8,550 for families. If you’re 55 or older, you can contribute an additional $1,000. Maximize your contributions each year to take full advantage of the tax benefits and growth potential.
2. Invest Aggressively Early On
If you’re young and healthy, consider investing aggressively in your HSA. With a longer time horizon, you can afford to take on more risk, which can lead to higher returns.
3. Use Other Funds for Medical Expenses
To allow your HSA investments to grow, try to cover current medical expenses out-of-pocket if possible. This way, your HSA can continue to grow tax-free, providing a larger nest egg for future healthcare costs or retirement.
NueSynergy’s Health Savings Accounts offer a unique opportunity to combine healthcare savings with robust investment potential. By understanding the tax advantages and investment opportunities NueSynergy provides, you can maximize your financial health and secure a more prosperous future.
The IRS announced the 2025 contribution limits for all Flexible Spending Account (FSA) plans. Below is an overview of the limit increases across all the types of FSAs except for Dependent Care FSAs, which remain the same at $5,000 per year.
Health Flexible Spending Account
The Health FSA, which provides employees the ability to set aside money on a pre-tax basis to pay for eligible medical, dental, and vision expenses will have an increase to its contribution maximum from $3,200 to $3,300 for 2025. The new contribution limit will also apply to the Limited Purpose FSA which reimburses eligible dental and vision expenses. Limited Purpose FSA limits will also increase from $3,200 to $3,300 for 2025.
Carryover Limit
The FSA Carryover limit provides employers the option to transfer a maximum amount of remaining FSA balances at a plan year’s end to carryover for use during the next plan year. This is available with Healthcare and Limited Purpose FSAs only. The carryover limits for this account will increase from $640 to $660 for 2025.
Commuter Benefits
Commuter Benefits help employees pay for certain parking, mass transit, and/or vanpooling expenses with pre-tax dollars. The contribution limits for this account will increase from $315 to $325 for 2025.
Adoption Assistance
The Adoption Assistance FSA helps employees pay eligible adoption expenses such as agency fees and court costs by contributing to the account with pre-tax money from their paycheck. The contribution limits for this account will increase from $16,810 to $17,280 for 2025.
