Invest Your HSA Balance

HSA Growth: Now’s the Time to Invest Your HSA Balance

Opening a Health Savings Account (HSA) can be a great investment in your personal healthcare and financial future. Owned by the participant-employee (rather than the employer), the HSA is a versatile spending and savings account that can be used for many healthcare expenses. Since they can keep the account for life, HSA owners should adopt strategies for building their account balance and using the account to its maximum potential. Should you just save and earn

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IRS Issues More ARPA Guidance on Premium Assistance for COBRA

On July 26, the Internal Revenue Service (IRS) issued Notice 2021-46, which provides further guidance on premium assistance for COBRA continuation coverage under ARPA. Topics covered include extended coverage periods, dental and vision coverage, state continuation, and who may claim the COBRA Premium Assistance credit.

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HSA Change of Status

Did Your Family Have a Change of Status? How a Mid-Year Update Could Impact Your HSA Contributions

When a Health Savings Account (HSA) owner has a change of status during the year, it affects how much he or she can contribute to their HSA. Learn how a mid-year change of status affects HSA contribution limits below. When a person with a qualified High Deductible Health Plan signs up for an HSA, the account comes with a ton of advantages. Account owners can enjoy pre-tax contributions, tax-free distributions for eligible health expenses (for

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IRS Clarifies ARPA COBRA Premium Assistance – FAQs and Answers

The Internal Revenue Service (IRS) recently published Notice 2021-31, with an extensive list of clarifications for the COBRA subsidy approved by the American Rescue Plan Act (ARPA). Subjects addressed in the Notice include Assistance Eligible Individuals (AEIs), involuntary termination of employment, furloughs, coverages eligible for the subsidy, and much more. The following questions and answers highlight frequently asked questions. This article is not intended as legal advice. Please contact your qualified benefits counsel if you

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ARRA and ARPA; stack of paperwork on busy desk

ARRA vs ARPA: Comparing COBRA Subsidies and Administrative Challenges

In the world of employer-sponsored benefits, COBRA subsidies have been the hot topic since the American Rescue Plan Act (ARPA) passed in March 2021. Not only does ARPA directly affect people who have lost their jobs since March 2020, but it also has a significant impact on how employers and COBRA administrators are handling the surge in COBRA eligibility over the past year. ARPA has drawn comparisons to the American Recovery and Reinvestment Act (ARRA)

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COVID-19 PPE Now Eligible for FSA, HRA, HSA Plans

The fight against COVID-19 has expanded to the purchase of personal protective equipment (PPE) items. On Friday, March 26, the IRS released Announcement 2021-7, which qualifies PPE purchased for the primary purpose of preventing the spread of COVID-19 as medical expenses under section 213(d) of the Internal Revenue Code. The regulation allows specific items to be purchased with or reimbursed from a health Flexible Spending Account (FSA), Health Reimbursement Arrangement (HRA), or Health Savings Account (HSA).

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ARPA Subsidy FAQ

ARPA COBRA Subsidy Frequently Asked Questions (FAQs)

On Thursday, March 11, President Biden signed the  American Rescue Plan Act (ARPA) of 2021. Among other features, ARPA provides full COBRA subsidies under specific circumstances and creates significant additional COBRA enrollment eligibility. The following is a list of common ARPA COBRA subsidy frequently asked questions (FAQs). This is not intended to be legal advice. Please contact your benefits counsel if you need additional guidance. ARPA COBRA Subsidy FAQs Are all COBRA-standard Qualifying Events (QEs) eligible

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ARPA: COBRA Subsidies and DCAP Limit Increase

ARPA is Approved: COBRA Subsidies and DCAP Increase Part of Legislation

President Biden signed The American Rescue Plan Act (ARPA) of 2021 into law on Thursday, March 11, 2021. In addition to stimulus checks and child tax credits, ARPA features full COBRA subsidies for a limited time and an increase in the maximum contribution limits for people who use Dependent Care Assistance Plans (DCAP) through their employer. Learn more below. COBRA Subsidies Under ARPA Under very specific circumstances, the ARPA legislation provides full COBRA subsidies from

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COBRA Time Frames due to COVID-19 extensions

Reelin’ in the Year: DOL Clarifies COBRA Time Frames Related to COVID-19

On Friday, February 26, the Department of Labor (DOL) published Disaster Relief Notice 2021-01, a follow up to the Joint Notice published May 4, 2020. The May notice required that health and retirement plans disregard a number of deadlines for individuals during the COVID-19 National Emergency, plus a 60-day period (the “Outbreak Period”) starting March 1, 2020. The COBRA deadlines impacted in the May 2020 notice include: The February 26 notice clarifies the position of

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Press Release: New Whitepaper Examines Administrative Concerns with COBRA and COVID-19 Deadlines

DataPath examines the effects of COVID-19 on COBRA and upcoming ERISA plan deadlines LITTLE ROCK, ARKANSAS (February 16, 2021) – DataPath, Inc., a leading developer of technology solutions for employee benefits administration, has published a whitepaper titled, “COVID-19 and COBRA Continuation Insurance: Where Do We Stand?” The paper takes a deeper look at the effect of the COVID-19 healthcare crisis on the economy – specifically, its impact on the COBRA insurance market – and how

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COVID-19 Outbreak Period for ERISA Plans Expires February 28

Third-Party Administrators (TPAs) need to be aware of the upcoming end to the COVID-19 outbreak period for group health plans. This deadline, which ends February 28, 2021, could cause unfamiliar administrative burdens on TPAs. In May 2020, following the passage of the CARES Act, the IRS and DOL issued a joint notice on COVID-19 deadline extensions for ERISA. The February 28, 2021 end date is based on the CARES Act, which determined the outbreak period

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HRA vs HSA - Similarities, Differences

HRA vs HSA: Examining the Similarities and Differences

Do you know the difference between a HRA vs HSA? The key difference between the two is that an HRA is employer-owned whereas an HSA is employee-owned. With an HSA, the employee keeps the account and can transfer it when he or she changes jobs. Account holders may also invest their HSA funds.

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Health FSA and DCAP Carryover Rules Approved for 2021

In December 2020, Congress passed the Consolidated Appropriations Act, 2021 (CAA), a $900 billion COVID stimulus bill. The legislation was aimed at helping Americans cope with pandemic-related challenges. Along with stimulus payments and other financial provisions, the bill also included modified carryover and dependent rules for Dependent Care Assistance Plan (DCAP) benefits, spend-down for health Flexible Spending Accounts (FSAs), election changes, and other updates. Traditionally, DCAP benefits have not included a carryover provision. However, with

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HSA withdrawal penalty

Understanding the HSA Withdrawal Penalty and Other Useful Information

Health Savings Accounts (HSAs) are a wonderful tool for saving money on healthcare expenses. When you enroll in a qualified high deductible health plan and sign up for an HSA, you contribute pre-tax money into an account then withdraw those funds for qualified healthcare expenses. When used for qualified expenses, withdrawals are tax-free. However, many HSA owners wonder if the money can be used for non-qualified expenses. If so, is there an HSA withdrawal penalty?

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