Latest News and Alerts

October 27, 2020
2021 Medical FSA, QTA and HSA limits - The IRS has announced that the 2021 salary reduction limit for Medical FSAs remains unchanged at $2,750. There is no change to the annual maximum for Dependent Care FSAs. The 2021 monthly maximum contribution for Qualified Transportation Accounts also remains unchanged at $270. The 2021 HSA annual contribution limit for those with individual coverage has increased from $3,550 to $3,600. The family contribution limit has increased from $7,100 to $7,200. The HSA Catch-up contribution remains steady at $1,000.
May 26, 2020
Additional Guidance for Section 125 Plans - The IRS recently released Notice 2020-29 and Notice 2020-33. Our summary of how these notices impact your Code Section 125 plan can be found in our latest Compliance Alert
April 30, 2020
IRS & DOL Issue Joint Guidance - The Department of Labor and the IRS have issued joint guidance on the extension of certain employee benefit plan deadlines. Please read our Compliance Alert for a summary of this guidance.
March 31, 2020
CARES Act Reverses Rx Requirement for OTC Items - The CARES Act was signed into law on Friday, March 27, 2020. The Act removes the requirement for participants in tax-advantaged accounts (FSAs, HSAs and certain types of HRAs) to obtain a prescription in order to be reimbursed for Over-the-Counter drugs and medicines. Menstrual Care items are now eligible for tax-free reimbursement as well. Please read our Compliance Alert for specific details. An updated list of eligible expenses can be found here.

As a reminder, our staff is deployed and there is no disruption to our normal processes or reimbursement schedule. We wish you good health during this unique time. Take care!
June 20, 2019
Final Ruling on HRA Options - The ruling “New Health Coverage Options for Employers and Employees” (www.irs.gov/newsroom ) was announced on June 13, 2019 by the departments of Labor, Treasury and Health and Human Services. We first told you about the proposed rule in October via an alert published on our website. Although the ruling presents new options, existing HRAs are not impacted. Highlights of the legislation are as follows:

Individual Coverage HRA (ICHRA)

• Employers of any size may establish an HRA that reimburses an employee’s premium for major medical insurance purchased in the individual market (including the Exchange) provided that certain requirements are met.

• If the premium cost exceeds the available HRA benefit, participants will be permitted to pay the difference with pre-tax salary reductions via a Section 125 plan provided that the plan was NOT purchased on the Exchange.

• Employers may continue to offer an existing group health plan to current employees while offering only the ICHRA to new hires (a choice between the two is not permitted).

• ICHRAs do not disqualify participants from contributing to an HSA unless the ICHRA also reimburses out of pocket medical expenses.

Excepted Benefit HRA

Employers who offer group health insurance will be permitted to also offer an HRA to reimburse premiums for certain “excepted benefits” (e.g., vision and dental insurance premiums, COBRA premiums and in some circumstances, premiums for limited duration coverage) up to an annual maximum benefit of $1,800.

As with all HRAs, a limited or unlimited carryover provision may be included. We found the Frequently Asked Questions published along with the ruling helpful.
The new rule dovetails perfectly with GDI’s existing HRA services. We are excited to enter this next phase of consumer-directed health care with our clients and broker partners. Stay tuned!