Brigette Renaud

Client has a 125 plan and contributions are made to an HSA (generous contributions by company). Client wishes to set up a separate track for medical benefits for all new employees hired after a certain date. Legacy employees continue to get the same favorable benefits. New employees receive an ACA compliant offer (perhaps with a premium only plan separate 125 plan). Thus, the new employees would not be ineligible to participate in the 125 plan. Any issues with this? Thank you.

HSA/Cafeteria Plan Design Question - Company currently has a HDHP and HSA for all employees after 90 days (company contributes max amount each year -- very $ to them with employee population of lower paid hourly getting medical benefits often exceeding their pay). Company wishes to change to funding HSA through a cafeteria plan. Then, no comparability testing of HSA and only 125 testing applies. At the same time, Company wants to narrow eligibility to apply a year lookback period to limit plan participation to full-time employees (those with on average 130 hours per month over a 12-month measurement period). Is this ok? Still ok if in addition, different contribution bands are established for hourly and salaried employees? Thank you!