HSA-Discrimination

[Guest dietpepsi]

HI,

As people often say on this board, I am out of my element. I received a question as follows: Employer makes contributions to HSA. The employer makes the contributions to the individual bank accounts of each employee. Two employees were naughty and the bank closed their accounts. Now the employer has no where to put the money. Based on what little I've read so far, the employer cannot simply not make the contributions for these employees just because they don't have a bank account. What are the employer's options? What if the employees don't set up new bank accounts or no bank will have them? I don't know how employer contributions are normally invested for HSA's. Is this normal for individual bank accounts?

Thanks!

[Guest dietpepsi]

Now I see in the proposed regs that the individual has to set up an account to get the employer contribution. Is everyone following the proposed regs even though they are not finalized? Thanks!