Questions and Answers - New Debit Card Guidance

With plan year enrollment coming up, there is important information you need to know about your Benefits Debit Card. The IRS recently issued Notice 2006-69 that clarifies where debit cards may be used and the approved methods for auto-substantiating debit card transactions. In some cases the IRS Notice provided good news. In other cases, you will need to provide substantiation where none was requested in the past.

October 26, 2006 · Categories: General, FSA, Consultants · Read article »

IRS Debit Card Guidance Summary - 2006-69

The IRS issued Notice 2006-69 that changes the way debit cards are used and how transactions are substantiated. In some cases the IRS Notice provided good news for debit cardholders. In other cases, cardholders will need to provide substantiation where none was requested in the past. Below is an explanation and summary of the Notice contents.

October 26, 2006 · Categories: General, FSA, Consultants · Read article »

Implementing HSAs when the FSA has a Grace Period

There are limitations imposed on who is eligible for an HSA when the flex plan includes the grace period extension. Congress authorized the grace period option in 2005 to reduce the impact of the FSA forfeiture requirement. The grace period extension allows employees to incur expenses in the new plan year and be reimbursed from their prior flex account balance up to 2 1/2 months into the new plan year. If an employer's plan includes the full grace period extension, employees in the FSA may not enroll in an HSA until the grace period is over, which is April 1 for a calendar plan year.

October 19, 2006 · Categories: General, HSA, FSA, Consultants · Read article »