Manage Your HSA or FSA on the Go

If you have a Health Savings Account (HSA) with Alliance Benefit Group North Central States, Inc. you more than likely already know that you have access to your account online at www.abgaccess.com. What you may not know is that we also offer a mobile app that helps you manage your HSA on the go! The BeneFIT access mobile application is available for your smart phone or tablet.

Access on the go. 

With the BeneFIT access app you have access to view your HSA account balance, activity and transaction details. You also have the ability to submit new expenses to the Expense Tracker and add the receipt using your device's camera. Or maybe you have a question for us? You can easily contact our customer service team via phone or email directly through the app.

Available at your local app store. 

Thinking this may be something you’d like? The mobile application is quick, easy and free to download. You have the option to download the app directly from the employee portal website or search "ABG BeneFIT Access" in the Apple App Store or Google Play. Once installed, enter your username and password from the employee portal website and then create a 4-digit password.

Also available for your FSA.

Do you have a Flexible Spending Account (FSA) with ABGNCS? No worries, the mobile app is for you too. For the FSA the app offers you the ability to:

•        View your account balance and required action items.

•        Enter new claims and attach documentation using your device's camera.

•        Submit documentation for debit card purchases using your device's camera.

I hope this information helps to shed some light on what our mobile app has to offer. And as always, please contact us with any question you may have at abgaccess@abg-mn.com, or call us at 1-877-661-4727.

The Author: Bethany Skogheim

Account Manager FSA/HRA/HSA

abgncs.com/hsafsahra

bskogheim@abg-mn.com

Disclaimer: This blog is of an informative nature and should not be taken as advice. Please work with the appropriate parties for those services.

Nondiscrimination Testing for Section 125 Plans

Most employers know Section 125 “Flex” plans and their various component benefits (FSAs, Dependent Care, group insurance premiums, etc.) are subject to nondiscrimination rules.  But did you know not complying with the nondiscrimination rules could result in taxation of employees’ benefits?  Or worse, the revocation of an employer’s ability to offer this type of pre-tax plan at all?  

The 2007 Proposed Regulations clarified that, upon review, employers must be able to prove these tests were run and passed each plan year.  But running these tests is not a simple process.  It requires work, time and cost.  In order for Alliance Benefit Group North Central States, Inc. to perform Section 125 nondiscrimination testing, an employer must provide very specific and detailed information, twice.  First in the middle of the plan year and then again after the plan year has ended.  We might even ask the employer to provide that information more than twice, depending on the results of the tests.  ABGNCS also charges employers a fee to perform these tests.  

So the question is, is it worth it?  Do employers really need to have this done year after year?  Even if the results are always passing?  The answer is yes!

Remember Section 125 plans offer employees a very significant savings.  

Contributions to Section 125 plan benefits are not subject to federal, state, Social Security or Medicare taxes.  Depending on their income tax bracket, an employee could save 25% - 40%, or more!  These plans also save employers Social Security and Medicare tax, which equals 7.65% savings on all funds run through the plan. 

The ability to provide these savings is threatened if an employer doesn’t ensure their plan is following the rules, which makes nondiscrimination testing an invaluable service!     

The Author: Sadie Wuerflein, CFC

Account Executive - FSA/HRA/HSA

abgncs.com/HSAFSAHRA

swuerflein@abg-mn.com

Pondering the New Rules for "Employer Payment Plans"

Anytime a ruling is issued by “the departments”, (Treasury, IRS and DOL) it is met with excitement and anticipation. But on the rare occasion we're left scratching our heads. That's the case with the Friday the 13th ruling, handed down in September. 

This ruling took previous guidance on health reimbursement arrangements (HRAs) and expanded it to “employer payment plans”. The case was made, that to follow the affordable care act “employer payment plans” must conform with the no annual limit benefit provision, thus no longer pre-taxing individual policies through an employer. I can't quite wrap my head around the notion of why “the departments” would want to make a ruling that counters so much previous guidance by those same departments? 

By taking away the pre-taxing of individual policies through an employer payment plan, the government essentially made purchasing individual policies through the exchanges equal. Instead of figuring out a fair and adequate way to make policies eligible for pre-taxing through the exchanges, they eliminated it for hundreds of thousands of individual policyholders that enjoyed lower premiums, portable coverage and employer help in paying for those policies.

If we're all ready to have a conversation to sort this out, I have an opening Thursday.

The Author: Roger Jorgensen, RHU, REBC

Marketing - HSA/HRA/FSA & COBRA

abgncs.com/HSAFSAHRA

rjorgensen@abg-mn.com

Tax-Favored Accounts Aren’t Ageists; I Promise.

Having worked with tax favored accounts since the mid-80s, I have always enjoyed the education of young people newly coming into the workforce. I love explaining how utilizing a flexible spending account (FSA) or health savings account (HSA) actually puts money in their pocket for Starbucks, dinner out, gifts, etc. I get great satisfaction when their eyes light up and they get it.

Imagine my horror when I am told by my wife that our 24 year old son is not paying for his bus pass with pre-tax dollars. Imagine my irritation when he tells me it really isn’t my concern. Ugh! Are you serious?! This is what I do! Imagine a knee surgeon being told by his son that his ruptured ACL is none of his dad’s concern.

I told my son that the $30 he is giving Uncle Sam (bus pass is $100) could by a few burgers, beers or flowers for his Mom!  It’s half of a video game; x12 it is $360. He told me it is a hassle to stop the pre-tax deduction. Advice from another learned 20-something, no doubt. But I’m not taking it personal. I remember my Dad telling me that I should max out my 401(k). I probably should have listened to him back then.  My son will learn. He’ll meet some gal - she’ll explain how he can be smarter with his money.

In the meantime, I’m stepping up my education efforts. That gal may be in one of the groups to whom I explain pre-tax deductions. She’ll love our new smart app that can take pictures of receipts and submit via phone. She’ll see the value in a dollar and will eventually convince him.  Yup...I’m going to be out there trolling for the newbies explaining how they can save money even though some people “JUST DON’T GET IT!”

The Author: Roger Jorgensen, RHU, REBC

Director of Marketing - HSA, FSA, HRA & COBRA

http://www.abgncs.com/HSAFSAHRA.aspx

rjorgensen@abg-mn.com