October 31st, 2013
The Department of Treasury issued Notice 2013-17 and an informational fact sheet today that modifies the long standing “use-it-or-lose-it” rules relating to flexible spending accounts (FSAs). The modification allows for a limited rollover of unused FSA dollars as follows:
- Effective in plan year 2014, employers that offer FSA programs will have the option of allowing participants to roll over up to $500 of unused funds at the end of the plan year.
- Effective immediately, employers that offer FSA programs that do not include a grace period will have the option of allowing employees to roll over up to $500 of unused funds at the end of the current 2013 plan year.
August 29th, 2013
On August 29, 2013, the IRS issued Revenue Ruling 2013-17 regarding the tax treatment of same-sex couples.
The Ruling Held that:
1. For Federal tax purposes, the terms “spouse,” “husband and wife,” “husband,” and “wife” include an individual married to a person of the same sex if the individuals are lawfully married under state law, and the term “marriage” includes such a marriage between individuals of the same sex.
2. For Federal tax purposes, the Service adopts a general rule recognizing a marriage of same-sex individuals that was validly entered into in a state whose laws authorize the marriage of two individuals of the same sex even if the married couple is domiciled in a state that does not recognize the validity of same-sex marriages.
3. For Federal tax purposes, the terms “spouse,” “husband and wife,” “husband,” and “wife” do not include individuals (whether of the opposite sex or the same sex) who have entered into a registered domestic partnership, civil union, or other similar formal relationship recognized under state law that is not denominated as a marriage under the laws of that state, and the term “marriage” does not include such formal relationships.
March 20th, 2013
On July 21, 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into Federal Law. A component of this legislation, the “Durbin Amendment,” specifically targets the processing of transactions originating from debit cards and prepaid cards, including FSA, HRA and HSA benefit cards. The changes directed by this legislation go into effect April 1, 2013 and may impact how merchants process plan participants’ benefit cards.
To comply with this legislation, plan participants will now have a unique Personal Identification Number (“PIN”) associated with their current benefit card(s). You may be prompted by some merchants to enter this PIN at the point-of-sale when purchasing eligible items.
Most merchants have indicated they will process transactions as either a debit card or a credit card. If you select “credit” instead of “debit” you will not have to enter a PIN. If you select “debit” you must enter a PIN. Some merchants may only allow the card to be processed as a debit card and therefore a PIN will be required.
You may obtain your PIN by logging into your personal online account at www.rockymountainreserve.com. Our customer service center can help you log in to your account, but by law they are not allowed to have access to your PIN.
It is important to note that there is no need for you to obtain a new benefit card at this time, there will be no changes to your benefit plan(s), and you can continue to purchase eligible items at the same merchants where you currently shop.
Please see our PIN FAQ or call us at (888) 722-1223 if you have any additional questions.
March 20th, 2013
Rocky Mountain Reserve is the service provider and administrator of HSA accounts. Custodians of our HSA accounts are The Bancorp Bank or HSA Bank. Although most of Rocky Mountain Reserve’s HSA account participants utilize the Rocky Mountain Reserve online portal found at www.rockymountainreserve.com, some continue to use the Bancorp Bank portal at www.yourhsasolution.com.
Please be advised that the Bancorp Bank HSA online portal through www.yourhsasolution.com is being retired and will no longer be available effective March 27, 2013.
Your account information through the Rocky Mountain Reserve online portal at www.rockymountainreserve.com will remain in place offering the same information and level of service that you have grown accustomed to. At the Rocky Mountain Reserve online portal you can continue to access current balance information, transactions and statements, year-to-date and previous year contributions and distribution history, as well as schedule online and check payments to yourself or your medical service providers.
Please be aware of the following items:
1. For your convenience, the following features are not changing:
- Your account number will remain the same.
- You will keep your HSA benefits debit card and may continue using it for point of sale expenses.
- Any bill payment schedules you’ve previously created will remain in place within the Rocky Mountain Reserve portal.
2. Before March 27th – Print your statements if you would like historical copies
- HSA statements provided online prior to March 27th, 2013 will no longer be accessible after the transition date. However, your entire transaction history will continue to be viewable within the Rocky Mountain Reserve portal.
Remember, as of March 27, 2013, online access to your HSA account will only be available through the Rocky Mountain Reserve online portal at www.rockymountainreserve.com.
Please call us with any questions at (888) 722-1223.
March 20th, 2013
Internal Revenue Code Section 125(i)(1) was revised by the Affordable Care Act. Effective for plan years beginning after December 31, 2012 it reads:
“For purposes of [Cafeteria Plans], if a benefit is provided under a cafeteria plan through employer contributions to a health flexible spending arrangement, such benefit shall not be treated as a qualified benefit unless the cafeteria plan provides that an employee may not elect for any taxable year to have salary reduction contributions in excess of $2,500 made to such arrangement.”
IRS Notice 2012-40 gives us guidance on implementing the limit:
“A cafeteria plan offering a health FSA must be amended to set forth the $2,500 limit (or, at the employer’s option, a lower limit specified in the plan). Notwithstanding this rule against retroactive amendments, an amendment to conform a cafeteria plan to the requirements of §125(i) nthat is adopted on or before December 31, 2014, may be made effective retroactively, provided that the cafeteria plan operates in accordance with the requirements of §125(i) (including the guidance in this notice) for plan years beginning after December 31, 2012.”
Rocky Mountain Reserve can amend and restate your Plan per the above requirement. Please email or call Bob Davis at firstname.lastname@example.org or (888) 769-0111.