by admin | Mar 22, 2022 | Blog
Congress has passed, and the President has signed, omnibus spending legislation that (among other things) temporarily exempts telehealth and other remote care services from certain restrictions affecting health savings account (HSA) eligibility. By way of background, tax-advantaged contributions generally cannot be made to an HSA unless the account holder is covered by a qualifying high-deductible health plan (HDHP) and does not have disqualifying non-HDHP coverage.
In the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Congress created exceptions to those rules to facilitate the use of telehealth during the COVID pandemic, but those exceptions applied only to plan years beginning on or before December 31, 2021. The new legislation—the Consolidated Appropriations Act, 2022—restores these exceptions for the last nine months of 2022.
The new legislation amends two key provisions in the Code 223 rules for HSAs. First, it provides that telehealth and other remote care services will be considered disregarded coverage—and thus will not cause a loss of HSA eligibility—during the months beginning after March 31, 2022, and before January 1, 2023. Second, during that nine-month period, plans may provide coverage for telehealth and other remote care services before the HDHP minimum deductible is satisfied without losing their HDHP status. Both amendments apply to the stated months without regard to the HDHP’s plan year. The relief does not apply for the first three months of 2022 so some plans (e.g., calendar-year plans) must still apply their minimum deductible to telehealth and other remote care services during those months. [EBIA Comment: Plans with 2021 plan years that started on or after April 1, 2021, should be unaffected by the three-month gap that affects other plans, because their CARES Act relief will not expire until those plan years end.]
EBIA Comment: HDHPs are not required to waive their minimum deductible for telehealth and other remote services during the additional relief period, so some plan sponsors may conclude that a midyear change to take advantage of the restored exceptions is too difficult to communicate and administer, and not worth the effort. Other plan sponsors, those who assumed Congress would extend the CARES Act relief without a gap and covered telehealth during the first three months of 2022 without applying the minimum deductible, may have a different problem: determining whether their plans can and should apply the minimum deductible to telehealth and other remote services retroactively to the gap period. Some covered individuals may be able to avoid the adverse HSA-eligibility consequences of their plan’s failure to satisfy the minimum deductible requirement during the first three months of 2022 by using the full contribution rule, which allows a full year’s worth of HSA contributions to be made by someone who is HSA-eligible for only a portion of the year. (This rule is also sometimes referred to as the “last-month rule” or the “no-proration rule.”) But that rule may not be available to all affected plan participants because some may not be HSA-eligible on December 1, 2022, and some may not remain HSA-eligible throughout the 13-month testing period beginning on that date.
Source: Thomson Reuters
by admin | Mar 22, 2022 | Blog
The FSA Store is a fantastic outlet for consumers to buy eligible products to fit their FSA account. With over 4,000 products on hand — from thermometers, pregnancy tests, flu & virus kits, blood pressure monitors – it’s a guarantee to find at least one product to enjoy.
To best utilize the virtual store, search any FSA eligible item you need for purchase. From there, add a promo code to any purchased FSA eligible item. All promo codes can be turned into points for future purchases.
The smallest denomination of points that can be redeemed for later use is 350 ($10) and largest is 1,500 ($50). You cannot redeem fewer than 350 points at a time. Balances under 350 points cannot be exchanged for a partial value dollar reward. Points expire six months (180 days) following your last order date. To learn about all FSA Store eligible items, look here.
by daziumdesign@gmail.com | Mar 22, 2022 | Blog
Filing forms can sometimes be stressful. Fortunately, there’s a way to remove the guesswork. Below is the newly released information regarding the filing guidelines for the 2022 IRS 1099-R and 5498 forms.
Forms 1099-R and 5498. Changes are limited to updating year references and removing the year-specific delivery and filing deadlines. Instead, the forms now refer users to the General Instructions for due date information.
Instructions for Forms 1099-R and 5498. There are a few changes, only some of which may affect 401(k) plan sponsors and plan administrators.
- Escheatments: Payments by qualified plans to state unclaimed property funds under escheat laws must now be reported on Form 1099-R. In Revenue Ruling 2020-24, the IRS announced a limited nonenforcement policy for payors and plan administrators who did not meet the withholding and reporting requirements described in the ruling but that relief has expired.
- Form W-4R: Payers are reminded that, beginning in 2022, Form W-4R should be provided to recipients of nonperiodic payments and eligible rollover distributions so they can request additional withholding or claim exemption from withholding. [EBIA Comment: These instructions mention only Form W-4R, but the IRS website states that during 2022 payers may use either the 2021 Form W-4P or the redesigned 2022 Form W-4P (for periodic payments) and new Form W-4R (for nonperiodic payments). The 2021 Form W-4P should not be used after December 31, 2022.]
- Disaster-Related Distributions: A new instruction explains how to report disaster-related distributions.
General Instructions. Dates and applicable penalty amounts have been updated. In addition, payers are alerted to several coming changes.
- Electronic Filing Threshold: The instructions note that the IRS has been authorized to lower the 250-return threshold for electronic filing of 2022 information returns, but final regulations have not been issued. (Regulations were proposed in July 2021). The threshold remains unchanged unless final regulations are issued that apply to 2022.
- Filing Portal: An internet portal for preparation, filing, and distribution of all Forms 1099 should be available starting in 2023.
- Continuous Use Forms: Form 1098 and certain 1099-series forms have been converted to continuous use and will, going forward, be revised only as needed. Form 1099-R, however, will continue to be updated annually.
EBIA Comment: Qualified plan distributions of $10 or more in 2022 must be reported to the IRS on this version of Form 1099-R. The deadline for providing the 2022 Form 1099-R to plan participants and beneficiaries is January 31, 2023. Copy A must be filed with the IRS by February 28, 2023, for scannable paper filings, and by March 31, 2023, for electronic filings. The 2022 Form 5498 generally must be filed and provided by May 31, 2023, but some information (regarding fair market value and required minimum distributions) must be furnished by January 31, 2023. Copy A filings on paper must be prepared using the official printed versions of the forms obtained from the IRS. Attempts to file non-scannable photocopies of the forms may result in penalties.
Source: Thomson Reuters
by daziumdesign@gmail.com | Mar 22, 2022 | Blog
NueSynergy takes pride in making our client’s lives simple and easier. That’s why if any issues occur with our products and services, we’re here to help. In the case of our benefits debit card not working, here are several reasons why it may be happening and what to do in the future.
- Wrong merchant code (when code isn’t tied to correct account plan)
- Card has been swiped too many times (up to five failed attempts)
- Not enough money in benefit account
- Don’t have an account
- Account is inactive
- Have an ineligible expense on account, which temporarily inactivates the card
- Dependent is using card but isn’t tied to plan
All of these actions prohibit a debit card from working correctly. In order to prevent a debit card from becoming inactive, documentation is required. The documentation must include account provider, type of service and date of service. Customers can provide documentation via email or fax. Documentation takes five business days to process.
by daziumdesign@gmail.com | Feb 10, 2022 | Blog
Welcome to NueSynergy! After months of hard work from our team and partners, NueSynergy is proud to announce the launch of our updated website. NueSynergy’s fresh and innovative look features everything you want to know about our financial services. This includes information and instructions on Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), Communications Portal, Commuter Benefits, COBRA, Direct Billing, and so much more.
Our cutting-edge graphics, designs and tables are now available for you to familiarize and manage your benefits and expenses. Please take a look around! We are so glad to make you part of our community. As we like to say, let’s build long-term relationships together.
by daziumdesign@gmail.com | Jan 6, 2019 | Blog
What does retirement have to do with health care? A lot. And there’s an investment vehicle out there that can help with it.
Most people aren’t thinking about Health Savings Accounts (HSAs) as an investment option for retirement, but an HSA is one of the best options on the market. As the name implies, HSAs are designed to help individuals sock away cash for medical expenditures. HSAs offer several other benefits, such as:
100% of unused funds roll over year-after-year,
funds go with you even if you switch employers,
they can pay for the eligible expenses of your legal spouse and tax dependents regardless of their insurance, and
be used for Medicare premiums as well as qualified long-term care premiums.
Most employees use HSAs for short-term costs; however, building those funds long term is just as important. A recent study by the Employee Benefit Research Institute (EBRI) found that more Americans are turning to HSAs to cover medical expenses, but very few use them for retirement planning. The study also found that few people are investing their HSA funds for the long term, and even fewer are maxing out their HSA contributions. The research was based on nearly 6 million HSAs with $13 billion in combined assets. And regardless of any findings, most people will incur substantial health costs in retirement, for which HSAs can help.
It’s important for participants to understand the best way to use the HSA is by treating it as an investment tool, primarily because of the triple-tax advantage. As of just a few years ago, 4% of accounts had investments other than cash. Understanding the HSA’s investment potential won’t occur overnight for most people. It’s also unreasonable to expect everyone to have the wherewithal to use their account solely for investing.
However, by educating participants and employers on the long-term value of the HSA, it’s realistic to expect a behavioral shift and an uptick in participants using the HSA as an investment tool for retirement. A key point here is to start using and funding HSAs now, while contributing close to the annual limits if possible.
