PHONE: 208.277.1047 ||
CORPORATE HEADQUARTERS:
COEUR D’ALENE, IDAHO

NEWS
AND INFORMATION
PEAK ONE ADMINISTRATION

  • News and Information

IRS Releases 2021 Limits for HSAs

On May 20, 2019 the IRS released Revenue Procedure 2020-32 which provides the 2021 inflation adjusted amounts for high deductible health plans (HPHPs) Health Savings Accounts. The amounts for HSAs for 2021 as compared to 2020 are as follows: 2020 Rev. Proc. 2019-25 2021 Rev. Proc. 2020-32 Annual limitation on deductions to a HSA – self-only coverage $3,550.00 $3,600.00 Annual limitation on deductions to a HSA – family coverage $7,100.00 $7,200.00 HDHP – self only coverage – Annual deductible not less than: $1,400.00 $1,400.00* HDHP – self only coverage – Annual out-of-pocket expenses do not exceed: $6,900.00 $7,000.00 HDHP –… Read More

    IRS Releases New Guidance on Cafeteria Plans and ICHRAs

    Today, IRS released Notice 2020-29 and 2020-33. These notices provided new relaxed rules for 2020 for making elections under Cafeteria plans, using amounts during a grace period or carryover period changes to the method determining the carryover amounts under Health FSAs and clarifying which premiums can be reimbursed under ICHRAs. The following is an explanation of both notices. Notice 2020-29 In Notice 2020-29, the IRS provides for increased flexibility with respect to mid-year elections under a cafeteria plan during calendar year 2020 related to employer sponsored health coverage, Health FSAs and DCAPs. This notice also provides increased flexibility with respect… Read More

      Coronavirus Testing & Treatment Covered by HDHPs

      The IRS has issued Notice 2020-15, which allows high-deductible health plans (HDHPs) to cover testing and treatment for coronavirus (COVID-19) pre-deductible. This means coronavirus testing and treatment are considered a qualified medical expense under an HDHP, and people can use health savings account (HSA) funds to pay for it. Due to the national health emergency coronavirus presents, this notice applies even to HDHPs that would otherwise be disqualified under section 223(c)(2)(A) – in other words, HDHPs offered by a health plan that provides other health benefits covering coronavirus testing and treatment, and HDHPs with a deductible that falls below the minimum… Read More

        IRS Confirms That HSA Contributions Can Be Made By July 15, 2020

        The Internal Revenue Service published a series of questions and answers relating to the delay of the tax filing deadline from April 15, 2020 to July 15, 2020 as provided in IRS Notice 2020-18.  With regard to contributions to an HSA, the IRS stated the following: “Contributions may be made to your HSA or Archer MSA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns is now July 15, 2020, under this relief, you may make contributions to your… Read More

          IRS and DOL Provide Relief for Participants and Plan Sponsors from Certain Time Deadlines Due to COVID-19 Pandemic

          Today, recognizing the impact of the COVID-19 Pandemic, the Internal Revenue Service and the Department of Labor released guidance that extends the period of time that a participant has in enrolling in coverage under a health plan, paying for COBRA continuation coverage, submitting claims for coverage and disputing denials of claims for benefits. The guidance also extends the period of time that a group health plan sponsor or administrator has to provide a COBRA election notice. Agency FAQs were also released related to the guidance. Essentially, the guidance provides that actions that must be taken with the time period from March 1, 2020 until… Read More