PEO forcing me to use certain bank for my HSA

[Guest kw4presdnt]

My employer use a PEO for all of there insurance and payroll needs. As part of my benefits package, I am allotted a specific amount of money. I am allowed to use this money to pay the preimum on insurance, AFLAC products, ext. However I am not allowed to take it as cash. I am also allowed to use this money to fund my health saving account.

My issue with this is that my PEO only allows me to use the bank that they are set up with. I feel as if I should be able to use any bank I so desire. They are forcing me into using a bank that I do not want to use. Does any one have any thought on this

Kyle

[leevena]

My employer use a PEO for all of there insurance and payroll needs. As part of my benefits package, I am allotted a specific amount of money. I am allowed to use this money to pay the preimum on insurance, AFLAC products, ext. However I am not allowed to take it as cash. I am also allowed to use this money to fund my health saving account.

My issue with this is that my PEO only allows me to use the bank that they are set up with. I feel as if I should be able to use any bank I so desire. They are forcing me into using a bank that I do not want to use. Does any one have any thought on this

Kyle

You are correct, they cannot restrict your choice of banks.

[Chaz]

An employer CAN limit the HSA provider to which it will deposit its HSA contributions and to which it direct deposits employee contributions. If an employer permits amounts to be transferred to another HSA provider, however, it will avoid the possibility of the arrangement being an ERISA plan.

[Guest kw4presdnt]

My employer use a PEO for all of there insurance and payroll needs. As part of my benefits package, I am allotted a specific amount of money. I am allowed to use this money to pay the preimum on insurance, AFLAC products, ext. However I am not allowed to take it as cash. I am also allowed to use this money to fund my health saving account.

My issue with this is that my PEO only allows me to use the bank that they are set up with. I feel as if I should be able to use any bank I so desire. They are forcing me into using a bank that I do not want to use. Does any one have any thought on this

Kyle

You are correct, they cannot restrict your choice of banks.

I fell the same way but can not find any hard infomation on why they cannot!

[Guest kw4presdnt]

An employer CAN limit the HSA provider to which it will deposit its HSA contributions and to which it direct deposits employee contributions. If an employer permits amounts to be transferred to another HSA provider, however, it will avoid the possibility of the arrangement being an ERISA plan.

thanks i will have to do some research on the ERISA plan because I am not that famerial with that

[Guest morris]

For administrative convenience, an employer can use any one bank exclusively to make it's deposits. However, you, as the employee and owner of the HSA money, can move that money to another bank if you so desire. No employer can tell you what to do with that money once it's deposited in your name.

Put yourself in the employer's shoes: 100 employees=100 deposits and everybody wants the deposit to go to THEIR bank. 100 different bank depostis. Administrative nightmare.

[GMK]

100 deposits and everybody wants the deposit to go to THEIR bank.

What am I missing? Doesn't payroll do this already?

[JanetM]

I haven't worked with these in a couple years, this was the last DOL guidance I knew of.

http://www.dol.gov/ebsa/regs/fab_2006-2.html

[Guest kw4presdnt]

For administrative convenience, an employer can use any one bank exclusively to make it's deposits. However, you, as the employee and owner of the HSA money, can move that money to another bank if you so desire. No employer can tell you what to do with that money once it's deposited in your name.

Put yourself in the employer's shoes: 100 employees=100 deposits and everybody wants the deposit to go to THEIR bank. 100 different bank depostis. Administrative nightmare.

I know for a fact that you can not have two Health Saving Account at the same time. Evan if you have a zero balance in one of them.

My employer all ready does this with our regular pay check for direct deposit, so it couldn't be that much more work to have direct deposit for my health savings money

[Guest kw4presdnt]

I haven't worked with these in a couple years, this was the last DOL guidance I knew of.

http://www.dol.gov/ebsa/regs/fab_2006-2.html

Thanks Janet, this is exactly what i have been searching for! not what i wanted to read but exactly what i was looking for!

[Guest Rajeev]

For administrative convenience, an employer can use any one bank exclusively to make it's deposits. However, you, as the employee and owner of the HSA money, can move that money to another bank if you so desire. No employer can tell you what to do with that money once it's deposited in your name.

Put yourself in the employer's shoes: 100 employees=100 deposits and everybody wants the deposit to go to THEIR bank. 100 different bank depostis. Administrative nightmare.

I know for a fact that you can not have two Health Saving Account at the same time. Evan if you have a zero balance in one of them.

My employer all ready does this with our regular pay check for direct deposit, so it couldn't be that much more work to have direct deposit for my health savings money

There is no restrictions on the number of HSA accounts a person has. Just the limits on the what can be contributed. I am not sure where you are getting your information as to the the restricted number of HSA accounts. Please provide guidance?