Open Enrollment for Section 125/Flex


There are a few rules that you should be aware of relating to Healthcare Reform (PPACA): 


  1. Health FSA - employees in the Health FSA must be eligible to enroll in your major medical group plan.  If there is no major medical group plan offered then you may not sponsor a Health FSA.  

  2. Health FSA with employer credits - the maximum employer credit allowed is the greater of 100% employer match of employee deductions or a $500 employer credit

  3. Individually Owned Premium (IOP) - where the policy is owned by the individual and is not a group policy, the IOP can only reimburse dental, vision, and specified disease premiums.  An IOP can no longer reimburse individual major medical premiums as pre-tax.  This does not affect pre-taxing of GROUP major medical premiums. 


For optional Health FSA carryover


See the details of the optional Health FSA carryover announced on October 31, 2013 in Health FSA Carryover.doc

Follow the instructions if you wish to add the carryover.  If you have already notified us to add the carryover there is no need to notify us again since it is a plan wide decision that applies for years going forward.  


For annual discrimination testing and Form 5500 preparation: 


We offer Form 5500 preparation for $125/hr with a $300 minimum.

Discrimination Testing (see 125discrim.pdf and 125 Non-Discrim Template.xlsx) costs $125/hr (usually 1-2 hours).  

Please contact us if you would like further information.


Marketing and other helpful information about HSAs with HSA Bank is below: