PLANSPONSOR - October/November 2019 - 22

Upfront
Gifts and
Donations
Can Come
At a Price
WHILE deciding on an appropriate gift
or donation is rarely a simple task, for
plan sponsors and providers it is far more
complex. First they need to understand:
What constitutes a gift? What are appropriate
spending or price limits? And what
rules do they need to keep in mind prior
to spending or donating?
Stephen Rosenberg, a partner in
the Wagner Law Group, offers one allinclusive
answer: The act of gift giving,
donating or contributing cannot signal
favoritism or include conflicts of interest.
" You can have lunch with [a client or
firm], but you really can't allow it to look
like there's any linkage, " he explains. " You
have to ask yourself, 'Would I be embarrassed
if this showed up on the front page
tomorrow morning?' "
In the plan sponsor space, conflicts
with gift giving and donations generally
occur when an employer is selecting a
provider, says Rosenberg. Plan sponsors
need to choose among vendors
prudently, he says. " It can't be based on
gifts or anything that has the appearance
of gifts. " Should employers select
vendors based on what would be a
conflict of interest, they are breaching
their fiduciary duties and run the risk of
a lawsuit.
For vendors, the Securities and
Exchange Commission (SEC) and Financial
Industry Regulatory Authority
(FINRA) have implemented stricter regulations
for both giving and receiving.
Several lawsuits have seen employers and
vendors alike harshening their stance on
these practices. -Amanda Umpierrez
5 Ways to Use an HSA
In Retirement
An average 65-year-old couple retiring this year will need
to have saved about $285,000 in a taxable account to pay
for health care and medical expenses through retirement.
Workers can save or invest their health savings account (HSA)
balance to have money for qualified medical expenses after
retiring. But there are other ways to use an HSA in retirement.
1. To Help Bridge the Gap to Medicare
HSAs can pay for health care coverage purchased
through an employer-sponsored COBRA [Consolidated
Omnibus Budget Reconciliation Act] plan and pay
premiums while receiving unemployment compensation.
2. To Cover Some Medicare Costs
HSA money can pay for expenses such as premiums for
Medicare Part B and Part D prescription coverage.
3. To Pay for Long-Term Care Insurance
HSAs can be used to cover part of the cost of a taxqualified
long-term care insurance policy.
4. To Modify One's Home
For those with a letter of medical necessity, HSAs can
be used to pay for certain improvements or additions
to a home.
5. To Pay for Everyday Expenses
At age 65 and beyond, the HSA-owner pays no penalty,
besides income tax on withdrawal, for using HSA money
for something besides health care.
Source: Fidelity Investments
22 PLANSPONSOR.com October - November 2019
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PLANSPONSOR - October/November 2019

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