pre-tax

Health Savings Accounts: Key Provisions

Posted April 21st, 2020 in Employers, Producers, Individuals
HSA Health Savings Account Medical Care Pay Costs Word Collage 3d Illustration
Health Savings Accounts (HSAs) have been available since 2004. Employees and individuals enrolled in qualified high deductible health plans (HDHPs) can put money into an HSA to pay for medical expenses at a later date. The contributions are tax-deductible, and if money is used to pay for medical expenses, the money can be withdrawn from the HSA tax-free. Unlike Flexible Spending Accounts (FSAs), there is no cap on the amount of money that can be rolled over from one year to the next.
 
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HSA, health savings accounts, pre-tax
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Safe Harbor Eligibility Test for Premium Only Plans

Posted November 13th, 2019 in Employers, Producers
Red and Green street signs with blue sky with words Pass and Fail, Pass versus Fail

Premium Only Plans (POP) can generally be defined as a type of Cafeteria Plan where the only pre-tax benefit available to employees are for those of insurance premiums. When non-taxable benefits are involved, the IRS will usually have some strict rules in place that must be followed.

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Premium Only Plans, nondiscrimination, IRS, pre-tax
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Health Savings Account (HSA) vs. 401(k)

Posted May 24th, 2018 in Employers, Producers, Individuals
Young Couple Saving Money

Why employees should max out their HSA contributions

Most people don’t think about an HSA as a savings account. Instead, they think of it as an account used to set aside money, tax-free, to pay for healthcare expenses. While this is true, the reality is an HSA is much more than a bank account. It’s a long-term savings vehicle.
 
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HSAs, 401(k), health savings accounts, HSA Contributions, pre-tax
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The Financial Benefit of FSAs for Employers

Posted October 17th, 2017 in Producers, Employers
The Financial Benefit of FSAs for Employers
To offer an FSA, or not to offer an FSA, that is the question. Let’s just cut right to the chase. 
 
Flexible Spending Accounts (FSAs) are a great way for employees to save on taxes for medical and dependent care expenses, but employers also receive financial benefits by offering an FSA. 
 
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Flexible Spending Accounts, FSAs, pre-tax, employers, Employee Benefits
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How to Determine FSA Administration Break-Even Point for Employers

Posted August 22nd, 2017 in Producers, Employers
How to Determine FSA Administration Break-Even Point for Employers
Flexible Spending Accounts (FSAs) are one of the few benefits an employer can provide that often pays for itself (and then some). While there are expenses that will be incurred by the employer when using a third-party administrator for the FSA, there are also payroll tax savings that will offset some or all of those expenses.
 
Tags:
FSAs, Flexible Spending Accounts, benefits administration, Employee Benefits, pre-tax, Income Tax
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Group Health Plans: Owners, Non-Employees & Domestic Partners

Posted October 3rd, 2016 in Producers, Employers
Group Health Plans: Owners, Non-Employees & Domestic Partners
Group health plans typically make coverage available to current or former employees and their spouses and children. However, some employers extend coverage to certain groups of non-employees. The most common example would be letting a business owner participate in the plan. Most types of business owners aren’t classified as employees for tax purposes, but rather they are said to be self-employed. 
 
Tags:
group health, small group health plans, cafeteria plan, FSA, HRA, HSA, pre-tax
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New Technology a Game Changer

Posted June 15th, 2016 in Producers, Employers
In part one and part two of this series, we examined how employees are increasingly responsible for their own healthcare costs and have adjusted their expectations accordingly. We conclude this series with an important announcement:
 
Tags:
healthcare reform, ACA, Affordable Care Act, consumer driven, pre-tax, HSAs, FSAs, HRAs, Commuting
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New Buyers Forcing Market Shift

Posted June 1st, 2016 in Producers, Employers
In the first part of this series, we discussed how everyone from insurance companies to employers has been affected by the Affordable Care Act (ACA), but no group more so than employees - the true healthcare consumer.
 
Tags:
healthcare reform, ACA, Affordable Care Act, consumer driven, pre-tax
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Market Changes, Mounting Costs

Posted May 18th, 2016 in Producers, Employers
Since the Affordable Care Act (ACA) took effect, Flex has been following closely as the market transitions further away from traditional healthcare concepts. The following is the first piece in a three-part series that addresses key industry issues, trends and solutions related to Consumer-Driven Accounts (CDAs).
 
Tags:
healthcare reform, ACA, Affordable Care Act, consumer driven, pre-tax
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Premium Only Plan (POP) Safe Harbor Test for Eligibility

Posted February 19th, 2016 in Producers, Employers
POP Safe Harbor Test for Eligibility

Premium Only Plans (POP) can generally be defined as a type of Cafeteria Plan where the only pre-tax benefit available to employees are for those of insurance premiums. Now, whenever non-taxable benefits are involved, the IRS will usually have some strict rules in place that must be followed. For Cafeteria Plans, these are referred to as non-discrimination rules, and these rules are in place to ensure the plan doesn’t discriminate in favor of highly compensated and/or key employees.

Tags:
pre-tax, IRS, Employee Benefits, cafeteria plan, Premium Only Plans
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