HSA & employer responsibility question

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cctrayders
Posts: 2
Joined: Fri Feb 25, 2011 12:43 pm

HSA & employer responsibility question

Post by cctrayders »

Not sure if this is type of question to be answered here. I rec'd one good answer elsewhere, but very much want verification if that answer IS correct. My employer contributes some monthly to my HSA acct. I have a larger amount kept from my paycheck to contribute to my HSA monthly. However, they are always at least a month behind, sometimes two months or a bit more, in getting the funds mailed/deposited TO my HSA bank account. They told us once that they had a month to get them in or a deadline of before 2 months, something like that. But it is really irritating to not have the funds available for two month AFTER they were withheld from our checks. Is therea rule/law that requires an employer to deposit these funds within a certain time period? Are there "exceptions"? We get paid every two weeks, 1/2 taken out each paycheck.
Some of us employees are really bothered by this, but are treated like we are being overly picky and getting upset over nothing, that the employer is doing ok. Wishing we had definite info, as we seem tobe viewed as complaining for no reason. thanks in advance!
grberry
Posts: 234
Joined: Fri Jul 20, 2007 1:16 pm
Location: Boston, MA

Post by grberry »

For the contributions coming from the employers money, the employer can make their own contributions as late as the tax filing deadline (without extensions) for your income tax return for the year the contribution is made for. Thus, most of the time, until April 15 of the following year. The employer's specific plan may impose more stringent requirements.

For your own money, I would expect that state wage laws and or federal regulations would probably require more timely payment, because that is your money and remains your money as it goes into the HSA account. But I haven't found the federal rule, and I'm not going to try searching every state's wage laws. What I'm thinking the federal rule would be is like (or even exactly) the one that applies to 401(k)s and other ERISA defined contribution plans which allows a little timing grace but the payment must be as soon as administratively feasible, given the specific process required on both the employer's end and the plan provider's end, but in no case later than a specified date. Again, the employer specific plan might also impose a more stringent requirement.
Topic Author
cctrayders
Posts: 2
Joined: Fri Feb 25, 2011 12:43 pm

Post by cctrayders »

Thank you for your reply. I just received another medical bill, and I must wait in order to pay it with my HSA money because my employer has delayed so getting it deposited. We may eventually go to the boss and ask for a little more of a schedule for the deposits. Seems when the one HR person is late getting the payments mailed it, it isn't being viewed as that important. And when we ask that person about it, the check is always "in the mail". Thank you again for the information you supplied!
Sidney
Posts: 6750
Joined: Thu Mar 08, 2007 6:06 pm

Post by Sidney »

cctrayders wrote:Thank you for your reply. I just received another medical bill, and I must wait in order to pay it with my HSA money because my employer has delayed so getting it deposited. We may eventually go to the boss and ask for a little more of a schedule for the deposits. Seems when the one HR person is late getting the payments mailed it, it isn't being viewed as that important. And when we ask that person about it, the check is always "in the mail". Thank you again for the information you supplied!
Unless you have a liquidity issue, you can pay the bill with taxable account and reimburse yourself later when the other money hits the HSA.
I always wanted to be a procrastinator.
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