High Deductible Health Plans (HDHPs) and Health Savings ...

Additional Rules—ERIS

 With regards to requirement #
HSA investment decisions), DO
2006-02 states, “The mere fac
HSA provider to which it will fo
a limited selection of investme
options that replicate the inve
employees under their 401(k)
the Department, constitute the
employee’s investment decisio
covered plan, so long as empl
choice of investment options a
moving their funds to another

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SA

#4 (i.e., not make or influence

OL Field Assistance Bulletin
ct that an employer selects an
orward contributions that offers
ent options or investment
estment options available to
plan would not, in the view of
e making or influencing of an
ons giving rise to an ERISA-
loyees are afforded a reasonable
and employees are not limited in
r HSA.”

ancisco, California 94111 51

Additional Rules—ERIS

 With regards to requiremen
any payment or compensati
HSA), the DOL has provided
issue

 It has stated that the emplo
savings from offering an HS
not be considered impermis
compensation

 However, an employer rece
product from an HSA vendo
selected would constitute th
impermissible payment or c

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Telephone: 415-788-3111 | Facsimile: 415-421-2017

SA

nt #6 (i.e., must not receive

ion in connection with the
d very little guidance on this

oyer’s FICA and FUTA tax
SA via salary reductions would
ssible payment or

eiving a discount on another
or that the employer has
he employer’s receiving an
compensation

ancisco, California 94111 52

Additional Rules—ERIS

 In the event the HSA is su
several unanswered ques
employer will satisfy certa
For example, how does th
Form 5500 for the HSA?
the HSA?

 Just be sure to follow the
that ERISA does NOT app

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SA

ubject to ERISA, there are
stions as to how the
ain ERISA requirements.
he employer complete the

How does COBRA apply to

e rules described above so
ply!!

ancisco, California 94111 53

Additional Rules—Secti

 An employer that contribu
outside of a cafeteria plan
excise tax equal to 35% o
a calendar year unless it m
contributions for all comp
employees for each cover
year

 These rules are IMPOSSIB
impossible, but very diffic

 Use the Section 125 exce

© Copyright Trucker Huss, APC | One Embarcadero Center, 12th Floor, San Fra
Telephone: 415-788-3111 | Facsimile: 415-421-2017

ion 125

utes to its employees' HSAs
n will be subject to an
of all of its contributions for
makes comparable
parable participating
rage period during that

BLE to meet—ok, not
cult
eption!

ancisco, California 94111 54

Additional Rules—Secti

 The comparability rules do n
contributions that an emplo
125 plan

 When HSA contributions are
plan, the 125 nondiscrimina
easier to understand and co

 Amend the 125 plan so that
additional pre-tax HSA salar

> This will allow for the treat
contributions to be treated

© Copyright Trucker Huss, APC | One Embarcadero Center, 12th Floor, San Fra
Telephone: 415-788-3111 | Facsimile: 415-421-2017

ion 125

not apply to HSA
oyer makes through a Section

e made through a Section 125
ation rules apply, which are
omply with
t employees can make
ry contributions

tment of all employer HSA
d as made through the 125 plan

ancisco, California 94111 55

Additional Rules—Cadil

 Becomes effective in 2018
 A non-deductible 40% excis

health plan (GHP) coverage

> Certain types of coverage exc

 Applies to the portion of the
exceeds the statutory limits

> $10,200 for self-only coverage
only coverage

• Limits are indexed for future
Index (not the rate of medica

> Cost of coverage to be dete
those for defining applicabl

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Telephone: 415-788-3111 | Facsimile: 415-421-2017

llac Tax

se tax on high-cost group
e under Section 4980I

cluded

e cost of coverage that
s

e and $27,500 for other than self-

years based on the Consumer Price
al inflation)

ermined under rules “similar” to
le premiums of COBRA coverage

ancisco, California 94111 56

Additional Rules—Cadil

 Assessed against the “cover

> Insured plan — Health insure
> HSA or Archer MSA — Employ
> Self-funded plan (major medi

that administers the plan ben

 Assessed on a calendar-yea

> Excess amount calculated on

• Calculated by the employer

 IRS has not yet issued any

> Proposals for future guidance

• Notice 2015-16 (February)
• Notice 2015-52 (July)

> Proposals request comments

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Telephone: 415-788-3111 | Facsimile: 415-421-2017

llac Tax

rage provider”

er
yer that makes contributions
ical, HRAs, health FSAs) — “Person
nefits” (controlled-group rules apply)

ar basis

a monthly basis

regulations

e issued in 2015

on various aspects of the tax 57

ancisco, California 94111

Additional Rules—Cadil

 Specific types of coverage s

> Major medical (insured and se
> Health FSAs
> HRAs
> HSAs (employer and empl

• IRS has proposed excludi
contributions

> Hospital indemnity or other fix
a pre-tax basis

> On-site medical clinics (some

 Could be the death of HSAs (b

© Copyright Trucker Huss, APC | One Embarcadero Center, 12th Floor, San Fra
Telephone: 415-788-3111 | Facsimile: 415-421-2017

llac Tax

subject to the tax include:

elf-funded)

loyee contributions)

ing after-tax employee

xed indemnity insurance if paid on

exceptions proposed by the IRS)

but we hope not!)

ancisco, California 94111 58

Contact

 Mary E. Powell, Esq.
Trucker  Huss, APC
One Embarcadero Center, 12th Flo
San Francisco, CA 94111
[email protected]

 Eric Schillinger, Esq.
Trucker  Huss, APC
One Embarcadero Center, 12th Flo
San Francisco, CA 94111
[email protected]

(415) 788-3111
www.truckerhuss.com

© Copyright Trucker Huss, APC | One Embarcadero Center, 12th Floor, San Fra
Telephone: 415-788-3111 | Facsimile: 415-421-2017

oor 59
oor

ancisco, California 94111

Disclaimer

 These materials have been prepa
informational purposes only and
advice

 Transmission of the information i
receipt does not constitute, an at

 Anyone viewing this presentation
information without seeking profe

 In response to new IRS rules of p
that any federal tax advice conta
specifically stated otherwise, is no
and cannot be used, for the purp
penalties or (2) promoting, marke
another party any tax-related tra
addressed herein

© Copyright Trucker Huss, APC | One Embarcadero Center, 12th Floor, San Fra
Telephone: 415-788-3111 | Facsimile: 415-421-2017

ared by Trucker  Huss, APC for
constitute neither legal nor tax

is not intended to create, and
ttorney-client relationship
n should not act upon this
essional counsel
practice, we hereby inform you
ained in this writing, unless
ot intended or written to be used,
pose of (1) avoiding tax-related
eting or recommending to
ansaction(s) or matter(s)

ancisco, California 94111 60