Managing HSA Contribution Limits in CoAd Pay

Set each employee's HSA contribution status in CoAd Pay — Individual or Family — so Health Savings Account deductions do not exceed the annual IRS contribution limits, and enable the catch-up option for eligible employees.

Why contribution status matters

Set HSA contribution status in CoAd Pay to ensure employee Health Savings Account (HSA) deductions do not exceed annual IRS contribution limits. Also, configure HSA catch-up contributions for eligible employees so the available catch-up contribution amounts calculate and apply.

Properly maintaining HSA status and catch-up settings helps ensure contributions are calculated accurately and remain within applicable limits.

Update an employee's contribution status

1. Navigate to Manage Employees.
2. Select the desired employee.
3. In the Details tab, scroll to the HSA Contribution Status section.
4. Select the employee's status type:
   • I — Individual
   • F — Family
5. Click Save Changes.

Configure the HSA catch-up option

To ensure HSA catch-up contributions calculate, in the Details tab of Manage Employees:

1. Enter the employee's Birth Date.
2. Check the Allow HSA Catch-up box.

Additional resources

• Review yearly contribution limits.

Frequently asked questions

What are the HSA contribution status options in CoAd Pay?

There are two: I for Individual and F for Family. You choose one in the HSA Contribution Status section of the Details tab in Manage Employees, then click Save Changes.

Why do I need to set an HSA contribution status?

Setting the HSA contribution status ensures that an employee's Health Savings Account deductions do not exceed the annual IRS contribution limits. Properly maintaining status and catch-up settings helps ensure contributions are calculated accurately and remain within applicable limits.

Why are HSA catch-up contributions not calculating for an employee?

Catch-up contributions calculate only when both settings are in place on the Details tab of Manage Employees. The employee's Birth Date must be entered, and the Allow HSA Catch-up box must be checked.