Just Tri Posted May 28, 2020 Posted May 28, 2020 Would employee's HSA contributions withheld from paychecks be a safe harbor exclusion? I don't think so, but maybe I am missing it. Thanks for any guidance.
Mr Bagwell Posted May 28, 2020 Posted May 28, 2020 Generally, HSA contributions would not be excluded compensation in the long run as they are Section 125 elective deferrals. So you're not excluding the compensation like you would, say, bonuses.
C. B. Zeller Posted May 28, 2020 Posted May 28, 2020 It is a safe harbor definition to exclude deferrals. Deferrals includes sec. 125 deferrals (which includes pre-tax HSA contributions) and also 401(k)-type deferrals. If you excluded just sec. 125 deferrals but not 401(k) deferrals it would not be a safe harbor definition. Luke Bailey 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
CuseFan Posted May 28, 2020 Posted May 28, 2020 CBZ is correct - you can exclude such items and be a safe harbor definition but it is an all or nothing choice, you cannot pick and choose among the excludable items. Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now