“All men make mistakes, but only wise men learn from their mistakes.” – Winston Churchill
The IRS recently released an information letter describing circumstances that would allow an employer to recover contributions mistakenly made to its employees’ Health Savings Accounts (HSAs).
Previously, IRS guidance allowed employers to recover HSA contributions in very limited situations, such as when the contribution exceeded the applicable annual limit. The new guidance also allows employers to recover HSA contributions when there is clear documented evidence showing there was an administrative or processing error.
In addition, the new IRS information letter provides specific examples of common administrative or process mistakes that occur when administering HSA contributions. Contact one of our BenefitCorp consultants here for additional help on HSA recoveries.