Tag: Flexible Spending Accounts

September 15 to October 15 is National Hispanic Heritage Month

National Hispanic Heritage Month is the period from September 15 to October 15 in the United States, when people recognize the contributions of Hispanic and Latino Americans to the United States and celebrate the group’s heritage and culture.

Started as Hispanic Heritage Week by president Lyndon Johnson in 1968, September 15 was chosen as the starting point for the celebration because it is the anniversary of independence of five Latin American countries: Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. All declared independence in 1821. In addition, Mexico, Chile and Belize celebrate their independence days on September 16, September 18, and September 21, respectively.

As a Minority Business Enterprise (MBE), one of our core beliefs as a company has always been to celebrate diversity and inclusion. Sterling Administration supports our Spanish-speaking Employer Clients and Members with services including a Spanish language option for our full-service website, online enrollment, educational materials, forms, and customer service.

¿Habla Español?
Nuestro compromiso con los latinos no es simplemente hablarles en español, sino realmente entender y hablar su mismo idioma. Aprende más.

Are you an Industry Partner with clients looking for a solution in Spanish?
Contact us today to learn more.

Important IRS Updates: Contribution Limits & FSA Compliance

The Internal Revenue Service announced the following new benefit plan limits for 2015. In addition, the IRS just issued an important change to Section 125 Cafeteria Plans. We’re notifying FSA clients about this change now.

Health Savings Account (HSA) Limits

  • 2015 HSA contribution limits are $3,350 for self-only coverage and $6,650 for family coverage.
  • High deductible health plan deductibles are $1,300 for individuals and $2,600 for families. Out-of-pocket expenses cannot exceed $6,450 for individuals and $12,900 for families.

Flexible Spending Account (FSAs) Limits

  • Healthcare FSA: The annual maximum for Healthcare FSAs has increased from $2,500 to $2,550 for 2015.
  • Dependent Care FSA: At this time, the IRS has not released information on contribution limit changes to these plans.
  • Transit & Parking FSA: Contribution limits remain unchanged for 2015. The monthly limits are $250 for parking, $130 for transit and $20 for bicycle commuting.

IRS Issues Notice 2014-55 Allowing Additional Permitted Election Changes to Health Coverage Under Section 125 Cafeteria Plans

The IRS just issued Notice 2014-55 to expand the permitted election rules for health coverage under a Section 125 cafeteria plan. There are now two situations in which a Section 125 cafeteria plan participant is permitted to revoke her/his election during a period of coverage:

  • The first situation involves a participating employee whose hours are reduced so that the employee is expected to average less than 30 hours of service per week, but for whom the reduction does not affect the eligibility for coverage under the employer’s group health plan.
  • The second situation involves an employee participating in an employer’s group health plan who would like to cease coverage under the group health plan and purchase coverage through a competitive marketplace established by the ACA Exchange or Marketplace.

We are in the process of notifying FSA clients regarding amendment to their plan documents, if they choose. Read more about this change in this release from the IRS.

Please contact us if you have questions or need more information.

For Employers: Save with the $500 Flexible Spending Account

New Healthcare Flexible Spending Account (FSA) regulations allow employers to choose an optional rollover of up to $500 to the next plan year so employees no longer face the “use it or lose it” rule up to this amount. Setting up a Healthcare FSA for employees and funding it with at least the $500 rollover amount is a great way to take care of employees and take advantage of tax savings. Of course one can choose the traditional Healthcare FSA set-up as well with increased funding.

Plus, Sterling can:

  • Set up the Healthcare FSA mid-year, short plan year
  • Coordinate the Healthcare FSA with health savings accounts and health reimbursement arrangements

And we offer:

  • Online enrollment, making it easy and fast for employees to participate
  • IIAS compliant debit cards
  • Expert claims processing and compliance services to protect employers and employees
  • Online account management tools

Contact your Sterling sales representative today for more information about the $500 Healthcare FSA and all of our services, including HSA, HRA, FSA (full suite), POP, COBRA, ERISA and PPACA compliance.