Why Doesn't Wrap360 Offer Standalone HSA Plan Documents?

A Health Savings Account (HSA) is a health care savings vehicle open to workers covered by a high-deductible health plan (HDHP). Both employers and employees can contribute on a pre-tax basis to HSAs, and withdrawals can generally be made tax- and penalty-free at any time for certain medical expenses. 

For employers who allow their employees to make pre-tax contributions to HSAs via salary reduction, it is necessary to maintain a written plan document that complies with Section 125 of the Internal Revenue Code. To generate Section 125-compliant documents, select "Health Savings Account (HSA) Contributions" as a type of benefit in Wrap360. Our combined Wrap Premium Conversion Plan-HSA Summary Plan Description and Plan Document will then automatically generate.

The reason that Wrap360 does not offer documents for a standalone HSA plan is because the HSA itself is administered by the HSA trustee or custodian and is not the concern of the employer—all the employer is responsible for is the HSA contributions.

Even though ERISA does not apply to HSA contributions, many employers choose to include HSA contributions and other ERISA-exempt benefits in the Wrap documents to keep all the benefits together in a single Welfare Benefit Plan. Deciding which non-ERISA benefits to include in the Wrap documents is at the employer's discretion.