Say you had a few thousand dollars in an HSP that has been sitting there about a year or so…it was infact your money that you gave pre-tax to the HSP. You left the employer who was the administrator of the HSP about that same year ago. Since then, the employer left the HSP model and the cash was REFUNDED BACK TO YOUR FORMER EMPLOYER!!! Who then claims that it is their money cause it was sent to them…no doubt that this is at best shady as all hell…but is it criminal? Or do I just sue the bastard…if there is even grounds…
I don’t pretend to know the actual law on this one, but it sure doesn’t seem to pass the smell test. Do you have an attorney, or better yet, a buddy who’s an attorney? I’d start by having him fire a quick letter off to the employer on his letterhead. I’d think that would likely solve the problem.
Oddly, a partner of Rockman is a Partner of a huge local firm. Thanks.
If by HSP you’re referring to a cafeteria plan where money was deducted from your paycheck, placed in the account and you failed to use the funds by the deadline, then yea, it’s technically their money.
If by HSP you are referring to the newer Health Savings Account, then it’s your money.
I’m confused as to what kind of plan this is: Flex spending, Health Savings account (HSA) (tied with a High deductible health plan), Health reimbursement plan (HRA) or something else. Where there any employer contributions, just your own or a mix?
With some of these plans the employer (or administrator) has to file form 5500 with the IRS… call the IRS TE/GE group them at the number below and ask them your question-- but be sure to know what type of plan it is before calling.
Telephone Assistance for Exempt Organizations, Retirement Plan Administrators, and Government Entities:
Toll-Free, 1-877-829-5500
Hours of Operation: Monday – Friday, 7:00 a.m. to 5:30 p.m. Central Time.