Overview
Can contributions to Health Spending Accounts (HSA) be changed?
Short answer: sometimes, but not just because you feel like it 😉
There are a few guardrails around when changes can happen. Those guardrails help keep things fair and avoid awkward situations later.
HSA contributions are considered part of an employee’s overall compensation, which is why there are rules around when and how they can change.
Let’s dig in!
The details
When changes can be made
You can change HSA contributions in two situations:
- At Plan renewal: This is the easiest time. Increases or decreases are both okay here.
- Mid-Benefit Period if a life event has occurred: Outside of renewal, changes are only allowed when there’s a real reason for them.
The key is that the change needs to reasonably line up with what’s changed in someone’s work or coverage. Not every change will qualify.
Some examples of life events:
- A change in job status (like part-time to full-time)
- A change in dependants
- A change in spousal coverage
For the full list (including what doesn’t count), check out Life events that allow HSA contribution changes.
A quick note on exceptions
In some cases, contributions can be decreased (but not increased) outside of renewal (even without a life event). Because contributions are tied to compensation, we may need confirmation or acknowledgement before making these updates.
In the case of single person Plans, there’s no risk of changing someone else’s compensation without their agreement.
With Plans that have more than one Member, we’ll need confirmation that everyone affected agrees to the change.
Anything else?
These guardrails exist to protect both employees and employers from unintended tax or employment issues. And we’re happy to help you navigate them! When you reach out, let us know what change you’re hoping to make and when you’d like it to take effect, and we’ll take it from there.
Employees joining or leaving the company? That’s totally fine and expected. New employees can be added or deactivated from your Plan. Adding and deactivating Members in your Plan Centre can help you out with details on those types of changes.
Still have questions about contribution changes? Ask us first! It’ll save time on everyone’s end. Reach out at hello@blendable.ca, or fill out the Support Form in your Plan Centre and our team will help you figure it all out!