HSA

Two HSA-Related Bills Passed by House, Senate Prospects Uncertain

The House of Representatives passed two bills that would make changes to health savings accounts (HSAs), Archer medical savings accounts (MSAs), flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs). There currently is no timetable for their being taken up by the Senate, nor certainty that they will be, during the 2018 session. HSAs are increasingly high profile savings vehicles, given the significant shift toward high-deductible health plans (HDHPs) as an employer health care benefit.

H.R. 6199

H.R. 6199, Restoring Access to Medication and Modernizing Health Savings Accounts Act of 2018, would do the following.

  • Allow HSA-eligible health plans to provide first-dollar coverage (coverage prior to satisfying a deductible) of a non-preventive nature in amounts up to $250 for those with individual coverage, $500 for those with family coverage
  • Allow treatment at an on-site employer or retail (e.g., pharmacy) clinic without the recipient being considered covered by an HSA-disqualifying health plan
  • HSA contribution eligibility under specified circumstances would not be affected by a spouse who is covered by a health FSA
  • A newly-established HSA could receive amounts transferred from a health FSA or HRA in an amount not to exceed the maximum annual FSA contribution limit ($2,650 for an individual and $5,300 for family for 2018)
  • Treat certain health and fitness expenses as qualified medical expenses for HSA, MSA, FSA, and HRA purposes
  • Allow individuals covered by a “direct primary care arrangement,” under which they receive ongoing care under a fixed periodic fee, as HSA-eligible, in the absence of any other HSA-disqualifying factor
  • Treat certain non-prescription medications and health aids (e.g., Ibuprofen, menstrual care products) as qualified medical expenses for HSA, MSA, HRA, and FSA purposes

H.R. 6311

H.R. 6311, Increasing Access to Lower Premium Plans and Expanding Health Savings Accounts Act of 2018, would do the following.

  • Increase the maximum annual HSA contribution to $6,650 for single coverage, $13,300 for family coverage (indexed)
  • If both spouses are eligible for the $1,000 HSA annual catch-up contribution, both amounts could be allocated to the account of one spouse
  • Treat individuals enrolled in Medicare Part A-only as HSA contribution-eligible, if no other disqualifying factors
  • If an HSA is established within 60 days after an individual is covered by an HSA-eligible HDHP, that HSA will  be treated as if it was established on the date coverage began, for purposes of covering medical expenses
  • Treat certain catastrophic and bronze-level health plans (as defined under the Patient Protection and Affordable Care Act, “Obamacare”) as HSA-eligible HDHP plans
  • Allow FSA year-to-year carryover of up to three times the annual FSA contribution limit (currently $2,650 for individual)

Watch the Ascensus News for further developments.


Chard Snyder Celebrates 30th Anniversary with Open House

Visitors Tour New Corporate Headquarters in Mason

Mason, OH—Chard Snyder, a third-party administrator of employee benefit solutions and wholly owned subsidiary of technology-enabled retirement, education, and healthcare solutions provider Ascensus, today celebrates the company’s 30th anniversary during an Open House at their new corporate headquarters. The recently opened facility is located at 6867 Cintas Boulevard in the City of Mason.

The Open House will take place June 28 from 3-7 p.m. ET for Chard Snyder’s advisors, clients, vendors, and business partners to thank them for their support over the last 30 years. Guests will enjoy food, music, time with their Chard Snyder partners, and brief tours of the new facility.

“Our new headquarters marks a transition to the next era for Chard Snyder,” said Joy Snyder, Chard Snyder’s president and co-founder. “It is a sign of our stability and growth, and shows our clients, partners, and the community that we continue to evolve while staying true to our values.”

First announced in February 2017, construction on the new two-story, 53,000-square-foot facility began in May 2017. Chard Snyder, which was recently ranked in the top 25 Largest Greater Cincinnati Employee Benefit Providers list by the Cincinnati Business Courier, outgrew its previous four-building campus just two miles away in Deerfield Township. When further expansion in that location was not possible, the decision was made to build the new headquarters in the I-71 Innovation Corridor in Mason. The state-of-the-art facility provides employees with great amenities, including an open work environment, collaboration spaces, a full kitchen and café, outdoor walking path, and individual wellness rooms.

“The new location provides our partners with easy access to our facility and allows us to be part of a growing local service and technology hub,” Snyder said. “Our team is finally together under one roof, increasing opportunities for growth and collaboration. We’re thankful for our first 30 years of business and excited about the future.”

A ribbon-cutting ceremony was held on May 24 to officially open the new building. City of Mason dignitaries, representatives from Al. Neyer construction and Chard Snyder executive team members cut the ribbon. Many of Chard Snyder’s 170 employees were on hand for the celebration.

About Chard Snyder

Chard Snyder provides employee benefit solutions to more than 1,400 employers in 40 states across the U.S. Chard Snyder administers savings and spending accounts (FSA, HSA, HRA, transit & parking), benefit continuation services (COBRA; retiree, direct and other billing) and FMLA leave, and provides plan document services. Founded in 1988 by Ken Chard and Joy Snyder, the company employs 170 team members today. Chard Snyder is a wholly owned subsidiary of Ascensus and the anchor of its new Health division. Visit www.chard-snyder.com or call 800.982.7715 to learn more.

About Ascensus

Ascensus helps more than 8 million Americans save for the future—retirement, education, and healthcare—through technology-enabled solutions. With more than 35 years of experience, the firm offers tailored solutions that meet the needs of asset managers, banks, credit unions, state governments, financial professionals, employers, and individuals. Ascensus supports over 60,000 retirement plans, more than 4 million 529 education savings accounts, and a growing number of ABLE savings accounts. It also administers more than 1.6 million IRAs and health savings accounts. As of March 31, 2018, Ascensus had over $187 billion in total assets under administration. For more information about Ascensus, visit ascensus.com.

View career opportunities at careers.ascensus.com and http://www.chard-snyder.com/about/careers/ or on LinkedIn at linkedin.com/company/ascensus. For the latest company news, follow @AscensusInc on Twitter.


Steve Christenson Addresses Using HSA Savings for Long-Term Care

In his original article ​published by Employee Benefit News, EVP Steve Christenson discusses how HSA savings can be used for long-term care in retirement. “If using the HSA savings for in-home care, individuals should document all expenses paid from the HSA, including documentation showing that the individual meets the IRS’ chronically ill definition,” states Christenson.


Chard Snyder and City of Mason Celebrate Official Opening of New Corporate Headquarters

Firm adds strengths in employee health, wellness and financial well-being to Mason entrepreneurial hub

MASON, OhioChard Snyder, a third-party administrator of employee benefit solutions and wholly owned subsidiary of technology-enabled retirement, education and healthcare solutions provider Ascensus, has moved into its new corporate headquarters at 6867 Cintas Boulevard in the City of Mason. The newly constructed 53,000 square-foot facility will house the company’s 170 team members, with enough room to accommodate projected growth.

“Our new headquarters marks a transition to the next era for Chard Snyder,” said Joy Snyder, Chard Snyder’s president and co-founder. “It is a sign of our stability and growth, and shows our clients, partners and the community that we continue to evolve while staying true to our values.”

“The Chard Snyder team’s expertise in employee health and financial well-being will be an incredible asset to the culture of wellness we’ve fostered in Mason,” said City of Mason Mayor Victor Kidd. “The company’s forward-thinking approach to personal health is a perfect fit for our entrepreneurial healthcare-focused hub.”

A ribbon-cutting ceremony was held today to officially open the new building. City of Mason dignitaries, representatives from Al. Neyer construction and Chard Snyder executive team members cut the ribbon with many of the company’s employees in attendance.

First announced in February 2017, construction on the new two-story facility began in May 2017. Chard Snyder outgrew its current four-building campus just two miles away in Deerfield Township. When further expansion in that location was not possible, the decision was made to build the new headquarters in the I-71 Innovation Corridor in Mason.

“The new location provides our partners with easy access to our facility, and allows us to be part of a growing local service and technology hub,” Snyder said.

Opening of the new headquarters coincides with Chard Snyder’s 30th year of business. A combined anniversary celebration and new building Open House will take place on June 28 from 3-7 p.m. ET for the company’s business partners.

About Chard Snyder

Chard Snyder provides employee benefit solutions to more than 1,400 employers in 40 states across the U.S. Chard Snyder administers savings and spending accounts (FSA, HSA, HRA, transit & parking), benefit continuation services (COBRA; retiree, direct and other billing) and FMLA leave, and provides plan document services. Founded in 1988 by Ken Chard and Joy Snyder, the company employs 170 team members today. Chard Snyder is a wholly owned subsidiary of Ascensus and the anchor of its new Health division. Visit www.chard-snyder.com or call 800.982.7715 to learn more.

About Ascensus

Ascensus helps more than 8 million Americans save for the future—retirement, education, and healthcare—through technology-enabled solutions. With more than 35 years of experience, the firm offers tailored solutions that meet the needs of asset managers, banks, credit unions, state governments, financial professionals, employers, and individuals. Ascensus supports over 60,000 retirement plans, more than 4 million 529 education savings accounts, and a growing number of ABLE savings accounts. It also administers more than 1.6 million IRAs and health savings accounts. As of March 31, 2018, Ascensus had over $187 billion in total assets under administration. For more information about Ascensus, visit ascensus.com.

View career opportunities at careers.ascensus.com and http://www.chard-snyder.com/about/careers/ or on LinkedIn at linkedin.com/company/ascensus. For the latest company news, follow @AscensusInc on Twitter.

About the City of Mason, Ohio

Mason, Ohio, is an established hub for bioscience innovation and includes a business portfolio of advanced manufacturing, healthcare and technology companies. As the largest city in Warren County and part of the Greater Cincinnati region in southwest Ohio, Mason’s economic development mission is focused on attracting and supporting the growth of top companies and creating jobs in these key sectors, while leveraging partnerships to also attract foreign direct investment. Ranked the seventh best place to live by CNN/Money Magazine in 2013, Mason is nationally-recognized for its low cost of living, award-winning schools and its intentional culture of wellness. Visit WhyMason.com to learn more.


Chard Snyder Recognized by WEX Health for Outstanding Achievement

Earns Partner Excellence Award for Sales

MASON, OhioChard Snyder, a wholly owned subsidiary of Ascensus that is headquartered in Mason, Ohio, has been honored by WEX Health with a 2017 Partner Excellence Award for outstanding business achievements. The employee benefit solutions provider received the Sales Excellence Award at the annual WEX Health Partner Conference held recently in Scottsdale, Arizona.

Chard Snyder was selected for the award because of its significant accomplishments in identifying new and innovative ways to drive growth, executing on unique and differentiated sales strategies, campaigns and channel programs to accelerate organizational expansion.

“Chard Snyder has recorded tremendous growth once again this year, gaining an exceptional number of new participants and significantly increasing their account volume over last year,” said Jeff Young, President of WEX Health. “They are engaged on all levels, from sales strategies and market insights to pilot opportunities with new products, features and sales tools. They’re a fierce competitor and broadening their national presence year after year.”

The Excellence Awards, established in 2008, are presented yearly and recognize WEX Health Partners that have achieved extraordinary notable accomplishments. Award recipients were recognized for reaching significant milestones in 2017 in 13 categories: Growth Excellence, Evangelist, Innovator, Market Maker, Sales Excellence, Service Excellence, Solution Visionary, Leadership, New Partner of the Year, Card Innovation Partner of the Year, Billing Partner of the Year, CDH Platform Partner of the Year, and Partner of the Year.

Chard Snyder has been a WEX Health partner since 2005.

About Chard Snyder
Chard Snyder provides employee benefit solutions to more than 1,400 employers in 40 states across the U.S. Chard Snyder administers savings and spending accounts (FSA, HSA, HRA, transit & parking), benefit continuation services (COBRA; retiree, direct and other billing) and FMLA leave, and provides plan document services. Founded in 1988 by Ken Chard and Joy Snyder, the company employs 170 team members today. Chard Snyder is a wholly owned subsidiary of Ascensus and the anchor of its new Health division. Visit www.chard-snyder.com or call 800.982.7715 to learn more.

About Ascensus
Ascensus helps more than 8 million Americans save for the future—retirement, education, and healthcare—through technology-enabled solutions. With more than 35 years of experience, the firm offers tailored solutions that meet the needs of asset managers, banks, credit unions, state governments, financial professionals, employers, and individuals. Ascensus supports over 60,000 retirement plans, more than 4 million 529 education savings accounts, and a growing number of ABLE savings accounts. It also administers more than 1.6 million IRAs and health savings accounts. As of March 31, 2018, Ascensus had over $187 billion in total assets under administration. For more information about Ascensus, visit ascensus.com.

View career opportunities at careers.ascensus.com and http://www.chard-snyder.com/about/careers/ or on LinkedIn at linkedin.com/company/ascensus. For the latest company news, follow @AscensusInc on Twitter.


Health Savings Account Contribution Limits to Increase for 2019

The health savings account (HSA) contribution limits for 2019 are increasing. The IRS issued Revenue Procedure 2018-30 announcing the HSA inflation-adjusted limitations for calendar year 2019.

The maximum HSA contribution limit for those with self-only insurance coverage will rise to $3,500 for 2019, and for individuals with family coverage will rise to $7,000. The additional catch-up limit for individuals who turn age 55 or older in the calendar year is not subject to inflationary adjustments, so remains at $1,000.

A health plan is an HSA-compatible high deductible health plan (HDHP) if it satisfies both an annual deductible and an out-of-pocket expense requirement. The maximum annual out-of-pocket amounts for HSA-compatible HDHPs for self-only coverage will rise to $6,750 for 2019 and to $13,500 for family coverage. The minimum deductible amounts for qualifying HDHPs for 2019 will remain at the 2018 limits of $1,350 for self-only coverage and $2,700 for family coverage.

Here’s a comparison of the 2018 and 2019 HSA limitations.

HSA Limitations 2018 2019
Contribution limit for self-only coverage $3,450* $3,500*
Contribution limit for family coverage $6,900* $7,000*
HDHP maximum out-of-pocket limit for self-only coverage $6,650 $6,750
HDHP maximum out-of-pocket limit for family coverage $13,300 $13,500
HDHP minimum deductible amount for self-only coverage $1,350 $1,350
HDHP minimum deductible amount for family coverage $2,700 $2,700
*Plus $1,000 maximum catch-up amount for individuals turning age 55 or older

Steve Christenson Addresses Using an HSA to Fund Long-Term Care

In a recent article​ published by ​Financial Advisor Magazine, ​Steve Christenson addresses ​​using an HSA to fund long-term care. ​While long-term care is a qualified medical expense for a​n HSA, there are a number of considerations to take into account to avoid taxes and penalties.​ Christenson recommends ​​documenting all expenses to help avoid subsequent headaches with the IRS.


HSA Contribution Limit for Family Coverage Restored to $6,900

The IRS has released Revenue Procedure (Rev. Proc.) 2018-27, stating that the health savings account (HSA) maximum contribution amount for 2018 will be restored to $6,900. In other words, the 2018 HSA contribution limit for an HSA owner with family coverage is now $6,900 instead of $6,850.

Rev. Proc. 2018-27 notes objections from stakeholders (HSA owners, financial organizations, and service providers) as the reason for this change. Many stakeholders cited unanticipated administrative and financial burdens. Some stakeholders asserted that the cost of removing $50 plus earnings to satisfy the reduced limitation could be greater than the tax benefit an HSA owner would realize from being allowed to retain the amount in an HSA.

The IRS had earlier announced a reduction of the limit to $6,850 in Rev. Proc. 2018-18. Originally, the 2018 family coverage contribution limit, announced in May 2017 in Rev. Proc. 2017-37, was $6,900. But the Tax Cuts and Jobs Act of 2017—the tax reform legislation enacted in December 2017—altered the formula that henceforth will be used to adjust annual contributions and associated limitations for HSAs, IRAs, and the Saver’s credit. As a result, annual contributions and other limitations will rise more slowly over time. This change prompted the IRS to declare that the new formula would be applied to 2018 limitations. Consequently, the 2018 family coverage HSA contribution limit was retroactively reduced from $6,900 to $6,850.

Relief for Taxpayers

Rev. Proc. 2018-27 addresses the issue of taxpayers who had made maximum $6,900 contributions then removed an amount to satisfy the IRS’ reduced 2018 limitation. The IRS indicates that such an amount removed by a taxpayer as an excess contribution may instead be treated as a mistaken distribution and recontributed by April 15, 2019. Mistaken distributions returned to an HSA are treated as never having been distributed and are not reported as contributions. Reporting of these events should be suppressed. However, the IRS points out in this guidance that financial organizations are not required to accept mistaken distributions.

Alternatively, according to Rev. Proc. 2018-27, taxpayers who remove and retain such an amount under the excess contribution rules may retain the excess without including it in their 2018 taxable income and without paying the 20 percent additional tax normally associated with amounts removed from an HSA but not used for qualified medical expenses. This must occur by the deadline for filing their 2018 federal income tax return, including extensions. Note that this alternative does not apply to an amount attributable to an employer-made contribution unless the employer includes it in taxable employee compensation.


Ascensus Continues to Expand Retirement and Consumer-Directed Healthcare Capabilities with Agreement to Acquire Benefit Planning Consultants, Inc.

Solutions Provider Enhances Retirement and Benefit Plan Services Offering with Addition of Diversified TPA.

Dresher, PA—Ascensus, a technology-enabled solutions provider that helps more than 8 million Americans save for the future, has entered into an agreement to acquire Benefit Planning Consultants, Inc. (BPC). Headquartered in Champaign, IL, BPC is a diversified third-party administrator (TPA) that provides retirement and consumer-directed healthcare (CDH) solutions. The firm assists businesses with the design, implementation, and administration of retirement plan services (such as 401(k), 403(b), 457, money purchase, profit sharing and employee stock owner ship plans) and benefit plan services (such as flexible spending accounts, health reimbursement arrangements, health savings accounts, and COBRA).

BPC, which was founded in 1979, serves clients across the nation by providing comprehensive retirement and benefit administration solutions with unmatched customer service. Its business practices, culture, and community involvement have earned accolades from numerous industry and business organizations for service and excellence, including recognition for being one of the Best Places to Work in Illinois in 2013, 2015, 2016, and 2017. Most notably, BPC was among the first TPAs in the country to earn certification from the Centre for Fiduciary Excellence, LLC (CEFEX) for Retirement Plan Administration Service.

“BPC is a great fit for Ascensus from both business and cultural standpoints,” states David Musto, Ascensus’ president. “Designing benefit and retirement plans that meet the needs of companies and their employees while treating clients with the utmost care and respect is very much in line with our mission of helping Americans save for the future—BPC’s talented group of associates will no doubt be an outstanding addition to the Ascensus team.”

“At BPC, we’ve always said that we’re small enough to care and large enough to do the job right,” says Habeeb Habeeb, BPC’s president and chief executive officer. “We’ll continue to maintain that mentality as part of Ascensus, taking advantage of our combined resources so that we can continue to bring passion to our work while placing a high value on our relationships with clients and partners.”

“With BPC, we are excited by the prospect of adding a hybrid TPA that provides a combination of retirement and CDH/benefit continuation services along with a fantastic service delivery reputation,” says Raghav Nandagopal, Ascensus’ executive vice president of corporate development and M&A. “We are committed to aggressively growing our CDH and benefit continuation offerings; adding BPC right after our acquisition of Chard Snyder fits this strategy.”

“We will continue to execute on multiple paths to success by acquiring not only standalone retirement TPAs, but also retirement plus CDH/benefit continuation TPAs as we seek to leverage the ongoing consolidation in the health and wealth market segments,” concludes Nandagopal.

About Ascensus
Ascensus helps more than 8 million Americans save for the future—retirement, education, and healthcare—through technology-enabled solutions. With more than 35 years of experience, the firm offers tailored solutions that meet the needs of asset managers, banks, credit unions, state governments, financial professionals, employers, and individuals. Ascensus supports over 54,000 retirement plans, more than 4 million 529 education savings accounts, and a growing number of ABLE savings accounts. It also administers more than 1.5 million IRAs and health savings accounts. As of December 31, 2017, Ascensus had over $163 billion in total assets under administration. For more information about Ascensus, visit ascensus.com.

View career opportunities at http://careers.ascensus.com/page/show/tpa and careers.ascensus.com or on LinkedIn at linkedin.com/company/ascensus. For the latest company news, follow @AscensusInc on Twitter.


IRS Says 2017 IRA and HSA Contribution Deadline Was April 17 Despite Accepting Returns on April 18

Although the IRS has yet to release official word, an agency representative confirmed to Ascensus that the deadline to make 2017 IRA and HSA contributions was not extended from April 17 to April 18, despite the agency having announced an that it would accept 2017 tax returns by midnight on April 18. The reason for the tax return extension was a systems failure preventing processing of returns. The deadline for IRA and HSA contributions generally is the date that income tax returns must be filed.

The IRS representative informed Ascensus that the agency determined these contribution deadlines for 2017 would remain April 17 because a taxpayer’s ability to make contributions was not affected by the IRS’s systems failure. The decision was said to be communicated to IRS staff at mid-day today (April 19).