More healthcare-related regulatory news for plan sponsors, including links to detailed information.
General information letter correcting mistake contributions to HSAs released
The Internal Revenue Service (IRS) released a general information letter (2018-0033) correcting mistaken contributions to health savings accounts (HSAs). According to the letter, Notice 2008-59 does not specifically address other situations in which contributions to an employee’s HSA are the result of the employer’s or trustee’s administrative or process errors, but the notice also was not intended to provide an exclusive set of circumstances in which an employer may request the return of contributed amounts. Rather, if there is clear documentary evidence demonstrating that there was an administrative or process error, an employer may request that the financial institution return the amounts to the employer, with any correction putting the parties in the same position that they would have been in had the error not occurred. Employers should maintain documentation to support their assertion that a mistaken contribution occurred.
To read the entire letter, click here.