August Compliance Q&A: Key Employer Guidance on COBRA, HSAs, FSAs & Form 5500

  • August 26, 2026
  • Posted by: Gus Altuzarra
  • Category: Compliance Q&A
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hra health plan

8.6.26  |  FSA LIMIT


Q. An employer’s FSA renews 7/1. With the increase to the dependent care limit, can employees contribute the full $7,500 in 2026?
One employee has contributed $2,500 to date in 2026. Since the plan renews 7/1, the contribution limit from 7/1 to 12/31 is $3,750, leaving the employee $1,250 short of the 2026 maximum. Can the employee contribute an additional $1,250 in 2026, or are they limited to $3,750?
A. The DCAP limits run on a calendar year basis. As long as the employer’s DCAP is amended to incorporate the new limit, the employee in question can contribute the extra $1,250 in 2026.

 

8.13.26  |  FORM 5500 SCHEDULE A


Q. For groups that are required to file a Form 5500, should we include Schedule A only for the plans that have 100 or more enrolled on the first day of the plan year, or should we include all the group’s plans, even if some of them have less than 100 enrolled?
A. You should include Schedule A for any insured policy under the plan, even if a particular policy does not cover 100 participants at the start of the year. As long as the plan as a whole has 100 participants at the start of the year, you should include Schedule A for all insured policies under the plan.

 

8.20.26  |  HDHP AND HSA INTEGRATION


Q. Our client has two HDHP/HSA situations:
1. Mom has self-only HDHP coverage through her employer. Dad has employee + children HDHP coverage through his employer. Can they have one $8,750 family maximum as a household? Can they split their contributions through each employer?
2. Dad has an HSA-qualified HDHP. Mom enrolls in a traditional medical plan. Can Mom have a Healthcare FSA or Limited Purpose FSA?
A. On situation 1, Mom and Dad will be able to split the family HSA contribution. They can decide how to split the contribution.
On situation 2, if Mom has general purpose FSA, Dad will not be able to contribute to an HSA. Mom would need to have a limited purpose FSA that does not “ruin” Dad’s HDHP coverage in order for Dad to contribute to an HSA.

 

8.27.26  |  HEALTH PLAN RATE INCREASE FOR COBRA PARTICIPANTS


Q. If an employer’s health plan rate increases at open enrollment, what is the standard on passing increases along to current COBRA participants?
A. It is customary to pass along annual health plan increases to COBRA participants. The COBRA premium can be set at 102% of the actual total cost for similarly situated active employees. COBRA rates can only be increased once per twelve months.

 

 

Answers to the Question of the Week are provided by Kutak Rock LLP. Kutak Rock provides general compliance guidance through the UBA Compliance Help Desk, which does not constitute legal advice or create an attorney-client relationship. Please consult your legal advisor for specific legal advice.



Author: Gus Altuzarra
Gus is the CEO of Aston Sharp Insurance Services. In 2012, Gus founded Aston Sharp to start offering a larger scope of insurance products to his clients. With extensive history in life, disability, and long-term care planning, Gus acts as a full service insurance advisor. Gus initially started working with group employers offering assistance with the new changes mandated by the ACA (Affordable Care Act). The in-flow of new technology in recent years has created an opportunity to revolutionize an outdated industry. Gus now works to consolidate Employee Benefits, HR, Payroll, Work Comp, and ACA compliance all under one roof – delivering an easy-to-use technology driven solution to his clients.

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