HSAs can support long-term savings, making employer contributions a valuable recruitment and retention tool. Employer Contributions to HSA: Everything You Need to Know Employer contributions to HSA (Health Savings Account) occur in two ways: with a Section 125 plan or 'Cafeteria Plan' or without...
Grace period:Your FSA plan can offer a 2.5-month grace period after the plan year. The employee can use the funds if they have medical expenses within the grace period. After the 2.5 months end, the employee loses the remaining balance, and theFSA forfeituregoes to your business. Carryover...
The Roth 403(b) is essentially a hybrid combining some features of a traditional 403(b) plan with some features of a Roth IRA. Roth IRA plans are self-established without any employer involvement or connection. Roth IRA investors must meet income eligibility requirements and cannot exceed the m...
A benefits plan, not a lunch menu The term cafeteria plan comes from the idea that employees can pick and choose benefits, not unlike selecting food items in a cafeteria. Although the phrase may sound dated, it remains the official term under Section 125 of the Internal Revenue Code, which...