Can an employer allow an employee to elect an HSA mid-year if offered as a new benefit under the employer's Cafeteria Plan?
An employer may offer an HSA mid-year as a new benefit under a Cafeteria Plan and allow the employee to elect an HSA, so long as their election for the HSA is made on a prospective basis. In such a situation, however, they may have other coverage under the Cafeteria Plan that cannot be changed (e.g., coverage under a health flexible spending account) that may prevent them from being an eligible individual with respect to the HSA.
Introducing UMB HSA Saver
UMB HSA Saver is a unique investment platform designed with ease in mind. Account holders can easily research, buy and sell funds with a couple clicks.
HSA FAQ Resource
Find answers to your most common HSA questions in our comprehensive HSA FAQs section.