If your organization allows the use checks or debit cards to withdraw HSA assets, it risks extending credit to the HSA owner, which is a prohibited transaction. Adopting certain policies and procedures may help prevent that from happening, along with the negative tax consequences.
Read MoreThe DOL issued two pieces of guidance on its new fiduciary advice prohibited transaction exemption, PTE 2020-02. One is intended to educate retirement savers about considerations when choosing a potential advisor, and the other is a detailed set of frequently asked questions.
Read MoreThe latest COVID-19 relief legislation comes in the form of the American Rescue Plan Act of 2021, signed into law on March 11. It contains a third round of direct payments to Americans, funding to help hard-hit industries, and many other provisions, including some that will affect health plans and defined benefit plans.
Read MoreProhibited Transaction Exemption 2020-02 outlines the factors that determine whether financial professionals are considered fiduciaries and gives clear guidance about how fiduciaries must comply with their responsibilities when providing investment services.
Read MoreWhat is a prohibited transaction under ERISA? What penalties are imposed under ERISA involving prohibited transactions? Are there any exceptions to the prohibited transaction rules?
Read MoreWhat is a prohibited transaction? Who is a disqualified person? What are the consequences of a prohibited transaction? How is a prohibited transaction corrected?
Read MoreThe U.S. Government Accountability Office recommends that the IRS and the Department of Labor establish a collaborative means of overseeing and managing prohibited transaction exemptions.
Read MoreWhile a debit or credit card gives HSA owners easier access to their HSA funds, it can also put their HSA at risk for a prohibited transaction. Fortunately, there are simple ways to avoid this risk.
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