According to the World Health Organization, roughly one in six adults worldwide are affected by infertility. Reasons can vary, which is why wide-ranging fertility benefits can also improve the lives of any adult wanting to start a family. Did you know that a variety of fertility and infertility treatments are eligible for health savings account...
Can you imagine sorting 4,000 rubber ducks? Well, our team did just that for the 26th annual Riverview Centers Duck Derby Race! We completed this project as part of the Waverly Shell Rock United Way Day of Caring on September 13. The race occurs on October 8 at 3 p.m. and is located on the...
Are you preparing to send your kids back to school? You might be surprised to learn that your health savings account (HSA) and medical flexible spending account (FSA) can help you save on a variety of back-to-school, expenses, including: Thermometers You can use your HSA or FSA to purchase a thermometer, which takes on added...
Many companies are recession-planning and looking for ways to cut costs. But employees remain top of mind for employers, with 55% of businesses saying they will not reduce salaries if there is a recession and 47% saying they will not reduce benefits, according to Employee Benefit News. Benefits are critical for attracting and retaining talent....
According to the Human Resource Executive, about half of employees don’t understand their benefits and 80% of employees never even open pieces of communication about their benefits. Often, employees feel confused about their benefits plans options, especially if their employer is using “complicated HR jargon” in their benefits messaging. How can your benefits messaging cater...
Dental expenses can be a significant financial burden, especially when unexpected dental procedures arise. For those who have health savings accounts (HSAs) or medical flexible spending accounts (FSAs), there are opportunities to save money on these expenses. Can I use my HSA or Medical FSA to pay for Dental Expenses? The good news is...
May is Mental Health Awareness Month, an opportunity to raise awareness and reduce stigma surrounding mental health issues in the workplace. With the ongoing COVID-19 pandemic and its impact on our daily lives, mental health awareness is more important than ever before. As an HR representative or benefits decision-maker, you have a responsibility to support...
The IRS requires flexible spending account (FSA) participants to submit documentation to prove their purchase was an eligible expense. The IRS emphasized these requirements and potential penalties for employers who are not meeting the requirements when they released an Office of the Chief Counsel memorandum last week detailing medical expense claim substantiation for medical FSAs...
More employees are enrolling in a high-deductible health plan (HDHP) each year, including more than half of U.S. private-sector workers in 2021 (according to Benefits Pro). Nevertheless, there are still misunderstandings that exist among employees about the significant value of an HDHP (or HSA-eligible health plan) and how it compares to a traditional health plan....
Have you recently changed employers? Are you considering making a change? Fortunately, when you participate in a health savings account (HSA) through Advantage Administrators, your HSA stays with you. There are plenty of myths about HSAs, but today let’s tackle what really happens to your HSA when you change employers.
HSA transfer
If your new employer offers an HSA, you can transfer the administration of your current account to your new employer’s HSA administrator. If you select this option, your new employer will provide you with a transfer request form that authorizes a new HSA custodian to take over the administration of your account. There are no IRS fees or penalties for this option.
“With a true HSA transfer, the key there is it’s a requester initiating to have the funds transferred directly from one HSA custodian to another, so those funds will never touch your hands,” says Amy Donlin, senior solution analyst, benefits, WEX.
HSA rollover
You can also take a rollover approach, which is a process by which you receive a check for your HSA funds. You have 60 days after receiving these funds to move them into another HSA, but watch out: if you exceed the 60-day window, those funds will be considered a distribution and taxed — and you’ll be assessed a hefty 20% penalty.
“This option is limited to only one time during the calendar year,” said Kyle Schulte, senior solution analyst, benefits, WEX. “It’s important to make sure when you’re consolidating these accounts that you understand what method is being used.”
Keep the HSA open
Alternatively, you can simply keep the HSA you already have. There are no IRS fees or penalties for doing so. If you do keep your current HSA, you can withdraw funds for eligible expenses at any time. However, you can only contribute to your HSA if you’re still enrolled in a high-deductible health plan. You can also invest some or all of the funds!
(Wondering how much you should contribute to your account in the first place? We’ve got you covered.)
Your HSA is your account
The bottom line is that your HSA is yours. This amazing savings tool doesn’t belong to your employer, so you get to take it with you wherever you go, even if your new employer doesn’t offer HSAs or provide HSA contributions. If you’re interested in learning more, check out this episode of Wex’s Benefits Buzz podcast to learn more.
The information in this blog post is for educational purposes only. It is not investment, legal or tax advice. For legal or tax advice, you should consult your own counsel. To stay up to date on benefits trends and insights, subscribe to our blog.