Who is responsible for updating and maintaining IRS limits for 401k, FSA, HSA plans?

Namely updates and maintain IRS limits on behalf of clients for 401K, HSA, and FSA. 

401K limit

The IRS limit for 401K is hard-coded on the deduction itself, so clients should not manually enter an Annual Maximum on the company-level deduction. The Namely system determines an employee's eligibility for 401K catch up by their age in Namely Payroll. On an employee's 50th birthday, the system will automatically allow them to initiate catch up deductions. This field must be left at the default 0.00 for the hard-coded cap to work.

TIP:

Refer to the IRS Benefits Contribution Limits for current 401K limits.

 

HSA and FSA Limits

The IRS limit for HSA and FSA is hard-coded on the coverage lines, so clients do not need to manually enter a Volume Limit Maximum on the coverage lines.  When an employee moves through the Enrollment Wizard, they will be offered the correct maximum based on their eligibility and age.  

• For HSA and FSA, the IRS limit is not hard-coded on the corresponding company-level deductions. If a client admin manually updates an employee's HSA or FSA deduction after the employee's enrollment is confirmed (via that employee's Deductions page), the employee's contribution may exceed the annual limit; therefore, updates to HSA and FSA contributions should only be managed through the Enrollment Wizard.

For more information, refer to our article Namely Recommended: Mid-year HSA/FSA Enrollments Best Practices.