Okla. Admin. Code § 260:40-24-4

Current through Vol. 42, No. 4, November 1, 2024

Section 260:40-24-4 - Amount of benefits available

(a) Subject to the limitations imposed by federal law, the maximum benefit which a participant may receive in any Plan Year for a health savings account shall be subject to the annual maximums set by the IRC 223. The maximum is indexed and is set each year. Individuals age 55 and older can also make additional "catch-up" contributions. An employee may also elect catch up benefits as directed by IRC 223 and the catch up provision is also indexed annually.

(b) The monthly or biweekly amount taken on this pre tax method will be based on the following deduction schedule as directed by the IRC Notice 2004-2. The maximum annual contribution to an HSA is the sum of the limits determined separately for each month, based on status, eligibility and health plan coverage as of the first day of the month. This will be calculated as the maximum annual limit plus catch up, if applicable, divided by 12 then multiplied by the number of monthly periods remaining in the Plan Year. If biweekly, this will be calculated as the maximum annual limit plus catch up, if applicable, divided by 26 then multiplied by the number of biweekly periods remaining in the Plan Year.

(c) Contributions to the HSA may be made pre-tax under a Section 125 Cafeteria Plan. Individual contributions are deducted pre-tax via payroll deduction. The employee, the employer, or both may make contributions to the HSA account.

(d) The non-discrimination rules applicable to a Cafeteria Plan are applicable to HSA contributions made under a Cafeteria Plan. This includes both employer and employee contributions. The following Cafeteria Plan rules do not apply to HSAs:

(1) The prohibition against a benefit that defers compensation by permitting employees to carry over unused elective contributions or plan benefits from one Plan Year to another (the Use-It-Or-Lose-It rule).

(2) The mandatory 12-month period of coverage.

(3) Change-in-status rules.

Okla. Admin. Code § 260:40-24-4

Adopted by Oklahoma Register, Volume 31, Issue 24, September 2, 2014, eff. 9/12/2014