BPC has carefully monitored the regulations surrounding ACA reporting as they have developed over the past several years. This fall, the IRS finalized forms and instructions related to ACA reporting, and we want to take a moment to detail how your account-based health plans (HRAs, FSAs, and HSAs), and COBRA coverage, could impact your reporting obligations.
The IRS has released the 2016 inflation-adjusted amounts for health savings accounts (HSAs): for calendar year 2016, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,350 and for an individual with family coverage is $6,750, with a “high deductible health plan” annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage, and the annual out-of-pocket expenses do not exceed $6,550 for self-only coverage or $13,100 for family coverage.
As 2014 draws to a close, we have selected a number of important compliance updates and recommendations you may need to consider for your retirement and benefit plans. Please contact a BPC team member to further discuss or implement applicable recommendations for your plans.
BPC Enhances HSA Administration
BPC has partnered with Avidia Bank to seamlessly integrate their robust banking platform with BPC's compliance and administration services. Thanks to this partnership participants will benefit from having no monthly administrative fees, more than a dozen mutual fund investment options, and the peace of mind that comes from keeping money with an FDIC-insured community bank. Learn More
Important Facts on Restating Your Retirement Plan Document
The mandatory Pension Protection Act (PPA) Plan Document Restatement Window, as set by the IRS, is open now through April 30, 2016. Here are details on how restatements impact your plan and how BPC is ready to help. Learn More
2015 Flexible Spending Accounts Limits
The IRS has released 2015 annual adjustments for various tax benefits including Flexible Spending Accounts (FSA). The maximum Health FSA election in 2015 has risen to $2,550.00. Learn more
New Health FSA Rollover Feature Benefits Employers and Participants
In the early stages of the new Health FSA rollover, the results for plan sponsors and participants are trending positive. By opting in for the new Health FSA balance rollover feature, you can reduce participants' fear of losing money and encourage employees to contribute more dollars into their Health FSAs, saving you and employees tax dollars along the way. Learn More
2015 Pension Plan Limits
The 2015 cost-of-living adjustments on dollar limitations for pension plans and other retirement-related items were released by the IRS. Some limits will remain unchanged in 2015 because the increase in the Consumer Price Index did not meet the statutory thresholds for their adjustment, however, other limitations will increase for 2015. Learn More
New Permitted Cafeteria Plan Changes
The Affordable Care Act gives people access to healthcare options they've never had before. However, without proper amendments, your Cafeteria Plan will likely restrict your employees from utilizing those options, effectively "trapping" them on your group health plan. Click here to learn more about BPC's recommended updates to your plan. Learn More
Important ACA Reminders
The Affordable Care Act (ACA) included rules that impact Cafeteria Plans and HRAs. We want to share another reminder about the following elements that should raise significant red flags if they're a part of your current benefit structure.
Be cautious if any these three statements are true of your organization:
1. We (the employer) contribute more than $500 into employee Health FSAs.
2. We offer a Health FSA to people who are not eligible for our Group Health Plan.
3. We reimburse individual health insurance premiums through our Cafeteria Plan or HRA.
Pairing a Health Savings Account (HSA) with a Qualified High Deductible Health (QHDHP) plan can help an employer’s bottom line, while giving employees more control of their health and well-being. HSAs are part healthcare account and part retirement account. Taking the best of both areas, a properly utilized HSA will provide a triple tax benefit, surpassing almost any retirement account on the market. Funds put into an HSA will go in tax-free, grow tax-free, and provided the funds are eventually used for qualified medical expenses, they will also be disbursed tax-free.
Many banks provide HSAs, but they don’t always have the deep regulatory understanding needed to guide accountholders through the complexities of managing their HSA properly. That’s why BPC has partnered with Avidia Bank to seamlessly integrate their robust banking platform with BPC’s compliance and administration services.
BPC’s team of certified Flexible Compensation Specialists guide clients and participants through what it takes to be eligible for an HSA, how much they can contribute to an HSA, what they can use the funds to purchase, and much more. From videos, to print materials, to online decision support calculators, BPC has a wealth of HSA-focused educational resources and can help you map out a specific educational strategy to bring your employees up to speed.
Participants will have real-time access to account balances and transaction history, control investment options, set up online bill payments, and view monthly statements through BPC’s website and mobile app. When employers offer additional reimbursement accounts, such as a limited-purpose FSA, BPC can drive all transactions for the participant from a single debit card, with all activity available on a single web portal.
Thanks to BPC’s partnership with Avidia, participants will benefit from having no monthly administrative fees, more than a dozen mutual fund investment options, and the peace of mind that comes from keeping money with an FDIC-insured community bank.
Employers benefit by keeping your costs down, while giving employees increased control and understanding over their healthcare decisions. If you’re interested in taking advantage of this exciting partnership, contact BPC at 800-355-2350 or emailing us.