What is an HSA?
A Health Savings Account or HSA means a trust created or organized in the United States exclusively for the purpose of paying the qualified medical expenses of the Account Beneficiary, but only if the written governing instrument creating the trust meets the following requirements:
- Regular HSA contributions must be made in cash, unless it is a rollover or transfer (and the HSA trustee or custodian accepts noncash rollovers and transfers);
- Prior to 2007, regular HSA contributions made for a taxable year could not have exceeded 100% of the highest annual policy deductible amount under the eligible individual's high deductible health plan (HDHP) for such year up to a certain dollar amount depending upon whether the HSA owner had self-only or family coverage under the HDHP. The maximum dollar amount each year is subject to cost-of-living adjustments rounded to the lower $50 increment. Beginning in 2007, regular HSA contributions made for a taxable year are no longer tied to the HDHP's deductible amount.
What does PenServ offer?
PenServ will provide the following as a package that can keep the Employer and the Employees up to date. The Heath Savings Account Packages includes:
- Plan document(s), and related adoption agreements.
- PenServ has both trustee and custodial documents
- Plan is based on the IRS Model plans and is updated each year to reflect any changes in the law. The disclosure is added to help describe the benefits to the Employee.
- PenServ sends all current distribution/transaction forms, which are updated each year to reflect any changes.