EBIA Weekly Newsletter

IRS Letter Explains Effect of Retroactive Medicare Coverage on HSA Contribution Limit

   February 23, 2017

Information Letter 2016-0082 (Nov. 10, 2016) Available at https://www.irs.gov/pub/irs-wd/16-0082.pdf The IRS has released an information letter affirming that health savings account (HSA) holders cannot make contributions for months of retroactive Medicare coverage. As the letter notes, Medicare coverage typically begins with the month an individual turns age 65, but the actual commencement date … Read More

Failure to Terminate Former Employee’s Login Credentials Leads to $5.5 Million HIPAA Settlement

   February 23, 2017

South Broward Hospital District: Resolution Agreement (Feb. 14, 2017) and Press Release (Feb. 16, 2017) Resolution Agreement Press Release HHS’s Office for Civil Rights (OCR) has announced a $5.5 million settlement with a HIPAA covered entity—consisting of health care facilities and affiliated physicians’ offices—that reported the breach of more than 115,000 … Read More

Under the 401(k) Plan Safe Harbor Rules for Hardship Distributions, Who Is a Dependent?

   February 23, 2017

QUESTION: Our 401(k) plan offers in-service hardship distributions using the Code’s hardship safe harbor events. Three of those events—medical, educational, and funeral expenses—permit hardship distributions to be made on account of a participant’s dependent. Who is a dependent for those safe harbor hardship events? ANSWER: The safe harbor hardship events for medical, educational, and funeral … Read More