Regulations proposed Thursday, May 31, by the Internal
Revenue Service would allow employers that contribute to employees’ health
savings accounts to accelerate contributions for employees whose medical care
expenses are greater than what the employer has so far contributed to the HSA
during the year.
Such an acceleration would enhance the appeal of HSAs by
reducing employees’ concerns that their accounts could be exhausted if they
incur big medical bills early in the year before employers make all of their
contributions.
The proposed rule would apply to HSAs that are not part of
Section 125 programs, in which employees make pretax contributions to their
accounts. Benefit experts say such an acceleration of employer contributions to
HSAs that are part of Section 125 programs already is permitted.
Read more about HSAs.
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Filed by Jerry Geisel of Business Insurance, a sister publication
of Workforce Management. To comment,
e-mail editors@workforce.com.
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