How do I file a complaint when an employer abuses Health Savings Account contributions by holding them up to 13 weeks?

Employer would hold up to 13 weeks of HSA contributions. I complained about this repeatedly. The problem would reoccur or nothing would be done.

The president of the company also contributed. (I believe that the company was using the held contributions for short term cash). Doesn't this violate Section 125 of the HSA act?

He being a high-salaried employee is benefiting from this at the cost of other employees in the HSA plan. This had been happening for a period of over 2 years. Asked by TomCr 43 months ago Similar questions: file complaint employer abuses Health Savings Account contributions holding 13 weeks Business.

Similar questions: file complaint employer abuses Health Savings Account contributions holding 13 weeks.

Looks like enforcement of HSAs is up to state Attorney Generals benefitscounsel.com/archives/001081.html..., the IRS is also involvedIRS Is Eyeing a Loophole in Health Savings Account RulesTax Analysts is reporting here that the IRS is aware that Health Savings Accounts ("HSAs") may constitute a possible source of abuse due to a loophole in the law. Remarks were made to that effect by Kevin Knopf, benefits tax counsel for the Treasury Department at a May 26 Silverstein and Mullens Tax Management Luncheon. The point of concern has to do with this: HSA account holders can spend funds accumulated tax-free solely for medical expenses until the age of 65.

However, no one really monitors whether or not the money withdrawn is actually being spent on medical expenses. In other words, there is no requirement that trustees monitor the withdrawal of these moneys or that individuals substantiate their expenses before making withdrawals. Of course, taxpayers are always subject to audit, and agents will likely look into this matter when performing an audit.

Will HSAs be the target of audits in the future? Knopf's answer is this: “It’s up to your discretion as professionals whether you think the IRS has the resources to go after thousands and thousands of individuals to ensure that they are using this money solely for medical expenses,” he told the audience. Sources: http://www.whitehouse.gov/news/releases/2006/04/20060405-6.html .

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