Regulations governing employers' contributions into employees' health savings accounts (HSAs) were issued last year. Those regs left two questions for later — how can employers make comparable contributions into employees' HSAs if employees haven't established their HSAs by the end of a calendar year, and whether employers can accelerate their contributions if employees incur medical expenses that exceed the amount of employer contributions currently available to them. New proposed regs answer these two questions. You may rely on these regs until final regs are issued.
Employer HSA Contributions Recap
Under the 2006 regs, before employers contribute into employees' HSAs, they must group similar employees and their high-deductible health plan coverage together. There are only three acceptable groups: full-time employees, part-time employees (i.e., those working fewer than 30 hours a week), and former empl...(register to read more)