December 10, 2007

Welcome to Benefits Challenge. Benefits Solved.

Here is a free, fun and intriguing way to test your knowledge. Each edition of the News & Review will include a test on topics such as FMLA, COBRA, FSA, HRA, HSA along with others various topics.

Question: An employer wants to offer a wellness program that has a condition for obtaining a reward based on satisfying a standard that is related to a health factor. Which of the following is NOT a requirement of such a program?

Your Response: INCORRECT

THE CORRECT ANSWER IS A. A. $1,100 deductible, $2,900 contribution maximum, $5,600 out-of-pocket maximum, and a $900 additional catch-up contribution if over the age of 55.

Except for the catch-up contribution limit, these thresholds were announced by the IRS in May 2007 in Revenue Procedure 2007-36. Catch-up contribution rules are found in §223(b)(3).