Question 1

Does a Section 125 plan need specific language to allow contributions pre-tax to a Health Savings Account (HSA)?

admin · Accepted Answer

Yes. A contribution to a health savings account (HSA) is not an insurance premium. It is a deposit to a savings account. Section 125 plans traditionally only contain language for group insurance premiums. In order to permit employees to contribute pre-tax to an HSA, the plan must be updated to include the required language. FlexBank’s document package comes standard with the proper HSA contribution language.

Question 2

Does a Section 125 plan need specific language to allow contributions pre-tax to a Health Savings Account (HSA)?

admin · Accepted Answer

Yes. A contribution to a health savings account (HSA) is not an insurance premium. It is a deposit to a savings account. Section 125 plans traditionally only contain language for group insurance premiums. In order to permit employees to contribute pre-tax to an HSA, the plan must be updated to include the required language. FlexBank’s document package comes standard with the proper HSA contribution language.