4.13 SR 05-06-2024 - Laserfiche WebLink

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© 2012 Hitesman & Wold, P.A. City of Elk River Flexible Benefits Plan 39 (c) not be claimed as another person’s dependent for purposes of such person’s federal income tax return; (d) not be actually covered by Medicare; and (e) not have any health coverage other than Permitted Insurance, Permitted Coverage, or coverage under a high deductible health plan (as defined under Section 223(c)(2) of the Code), whether or not such coverage is sponsored by the Employer. Participation in this HSA Contribution Feature component shall cease upon the earlier of the date upon which the Participant no longer satisfies the foregoing eligibility requirements or the date determined under Section 3.4 of this Plan. 16.5 Contributions. (a) Employer Contributions. Employer Contributions, if any, will be contributed to the Participant’s HSA at the times established by the Employer. (b) Employee Contributions. Amounts withheld from a Participant’s Compensation pursuant to an agreement authorizing salary reduction with respect to this Optional Benefit shall be contributed to the Participant’s HSA as soon as administratively feasible. 16.6 Limits on Contributions. Contributions made by a Participant and/or on a Participant’s behalf (i.e., Employer Contributions) into the HSA under this Plan are limited in accordance with the following rules. (a) General Limit. During a taxable year, total contributions to all health savings account owned by a Participant cannot exceed the indexed amount established under Section 223 of the Code. (b) Catch Up Contributions. An additional “catch-up” amount (determined on a monthly basis) can be contributed for eligible individuals who attain age 55 before the close of the taxable year. (c) Pro-rated Limit if Not Eligible on December 1st. If a Participant is eligible for HSA contributions during a taxable year but ceases to be eligible prior to December 1st of that taxable year, the contribution limit for that taxable year shall be determined by multiplying 1/12 of the applicable limit by the number of months the first day of which the Participant was eligible for HSA contributions. This pro-rated limit shall apply to all contributions made during the applicable taxable year, including those contributions made prior to the date on which the Participant ceased to be eligible for HSA contributions. (d) Special Rule if Eligible on December 1st. If a Participant becomes eligible for HSA contributions during the taxable year and is eligible on December 1st of such year, the Participant shall be deemed to have been eligible for each month in such taxable year and may make or receive HSA contributions up to the full annual limit. This special rule applies to all contributions made during the applicable taxable year, including contributions made prior to or after December 1st. Example: An Eligible Employee becomes eligible for HSA contributions on July 1st and remains eligible through December 1st. The Eligible Employee may begin making contributions to his or her HSA through this Plan on July 1st at a rate pursuant to which the full annual contribution will have been made by the end of the taxable year. Page 132 of 254