The IRS officially extended the deadline for individuals to file their federal tax returns and make IRA, HSA, and ESA contributions with Notice 2021-21. This notice also gives financial organizations until June 30, 2021, to file and furnish Form 5498 series forms.
Read MoreAn employer generally cannot recoup contributions it made to an employee’s HSA. But there are certain circumstances in which the IRS does allow an employer to recoup, or recover, contributions.
Read MoreFind out when it’s okay and when it’s not okay to accept prior-year contributions that are mailed to your organization or deposited through an ACH payment after the contribution deadline.
Read MoreIf your financial organization administers IRAs or HSAs, it’s responsible for reporting the contributions made to these accounts to account owners and to the IRS annually by May 31. Find out how to complete this type of reporting on Forms 5498 and 5498-SA.
Read MoreAlthough your organization may not be equipped to provide individualized financial advice, you can share general information about the advantages and disadvantages of three common tax-advantaged savings accounts.
Read MoreWhat 2021 will bring is yet to be determined. There is optimism, however, that one or more retirement or health savings-focused bills could be enacted in 2021. Several that were introduced during the past two years will likely be re-introduced in the 117th Congress.
Read MoreIRA, retirement plan, and HSA distributions must be reported to account owners and to the IRS by January 31. Follow these charts to be sure that the required distribution information is being entered correctly.
Read MoreAs 2020 draws to a close, you may want to remind your HSA owners that they don’t have to take a use-it-or-lose-it approach with their HSAs. Assets may be used for qualified medical expenses in subsequent years—or not used at all, continuing to grow into retirement.
Read MoreCan HSA owners repay mistaken distributions from their HSAs? When HSA owners use their HSA assets for nonqualified expenses, are those considered mistaken distributions? What options do they have for correcting these?
Read MoreWith benefits enrollment season soon underway, your organization may see an uptick during this time of year in potential clients who are looking to set up HSAs. Be ready to assist them—and your staff—by knowing and understanding the requirements for establishing an HSA.
Read MoreWhen an HSA owner turns 65, must the entire HSA be distributed? Can an HSA owner who is 65 or older use HSA assets to pay Medicare premiums? What happens if an HSA owner age 65 or older uses HSA assets for nonqualified expenses?
Read MoreThe DOL recently issued investment advice guidance to replace the guidance struck down in 2018 by the United States Court of Appeals for the Fifth Circuit. This latest guidance package includes a proposed prohibited transaction class exemption and a technical amendment to DOL Regulations 2509 and 2510.
Read MoreThe 2019 tax season is finally over. Then you find out that an HSA client received an incorrect IRS Form 1099-SA. How do you correct IRS forms for HSAs? No need to worry. The process is fairly straightforward.
Read MoreIRS Notice 2020-35 provides more deadline relief in response to the COVID-19 pandemic. Most awaited was an extension for providing the Form 5498-series information returns for IRAs, HSAs, MSAs, and Coverdell ESAs.
Read MoreThe IRS just released the 2021 HSA inflation-adjusted amounts for HSAs. While the contribution and out-of-pocket limits increased, minimum deductible amounts remain the same.
Read MoreThanks to the CARES Act, savers can use their HSAs to purchase over-the-counter drugs and medications without a prescription—a welcome change for many of your HSA clients.
Read MoreIn response to the coronavirus pandemic, the IRS has extended several time-sensitive, tax-related deadlines. IRS Notices 2020-17, 2020-18, and 2020-23 address specific actions that a taxpayer or entity has until July 15, 2020, to complete.
Read MoreThe CARES Act, signed into law March 27, is designed to assist the millions of Americans affected by the coronavirus (COVID-19) outbreak. The legislation has multiple provisions that affect retirement and health savings arrangements.
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