Q.- We are gathering data for our health FSA nondiscrimination testing. Is it true that we will need information for all of our employees, not just for those participating in the plan?
BAS Blog
Q.- An employee’s dentist offers a dental insurance discount plan for $100 per year. Can the $100 for the plan be reimbursed from the Health FSA?
Q.- Can an employee in our health FSA get reimbursed for a medical expense incurred by his grandson?
Last week, the House Committee on Ways and Means released a tax reform bill, entitled the Tax Cuts and Jobs Act. The bill focuses on changes to corporate and individual tax provisions, but it also includes some items applicable to HR and employee benefits.
Q.- Our Health FSA has the $500 carryover feature. We have an employee who contributed $2,000 to his health FSA this year because he thought his son was getting braces in November. The son will not be getting braces until next year. Can we let him carryover the full $2,000 instead of just $500?
A.- No. One of the requirements the IRS places on a health flexible spending account plan is that funds not used during the plan year are forfeited. The IRS has approved a limited exception for a $500 carryover. Your plan will risk disqualification if you allow the employee to carry over more than $500 into the next plan year.Q.- An employee is sending his daughter to ballet classes after school. He wants to know if the cost of the classes can be reimbursed from his health FSA. Can they?
Governor Christie signed Chapter 78, P.L. 2011 into law, effective June 28, 2011. This law provides for changes to the manner in which the State-administered retirement systems operate and to the benefit provisions of those systems. The law also changes the manner in which the State-administered Health Benefits Programs operate and the employee contribution and benefit provisions of those programs.
Governor Christie signed Chapter 78, P.L. 2011 into law, effective June 28, 2011. This law provides for changes to the manner in which the State-administered retirement systems operate and to the benefit provisions of those systems. The law also changes the manner in which the State-administered Health Benefits Programs operate and the employee contribution and benefit provisions of those programs.
