Benefits Enrollment & Deductions Flashcards
7 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Benefits Enrollment & Deductions flashcards as text
What is the IRS annual HSA contribution limit category for self-only HDHP coverage in 2024?
Answer: $4,150
For 2024, the IRS HSA contribution limit for self-only HDHP coverage is $4,150 ($3,850 was the 2023 limit).
If an employee turns 55 during the plan year and is HSA-eligible, what additional catch-up contribution are they allowed?
Answer: $1,000
The IRS allows an additional $1,000 catch-up contribution to an HSA for individuals who are 55 or older and HSA-eligible.
An employee enrolled in a Section 125 plan wants to revoke their FSA election because they simply changed their mind. The payroll manager should:
Answer: Deny the change because irrevocability is a core Section 125 rule
Section 125 plans operate under the irrevocability rule, which prohibits mid-year changes unless a permitted status change event has occurred.
For COBRA purposes, which of the following is NOT a qualifying event for a spouse?
Answer: The covered employee's reduction in hours below full-time
A reduction in hours is a qualifying event for the employee, not for the spouse; however, the spouse would lose coverage if the employee lost eligibility.
Which payroll deduction priority order is correct when multiple deductions compete for limited wages?
Answer: Taxes and mandatory deductions first, then involuntary garnishments, then voluntary deductions
Taxes and mandatory deductions (such as tax levies and child support) take priority, followed by other involuntary deductions, and voluntary benefit deductions come last.
An employee enrolls in a Limited-Purpose FSA. Which expenses are eligible under this type of FSA?
Answer: Dental and vision expenses only
A Limited-Purpose FSA is restricted to dental and vision expenses, allowing HSA holders to also maintain an FSA without disqualifying their HSA contributions.
Employer contributions to an employee's HSA are reported on which tax form?
Answer: Form W-2, Box 12, Code W
Employer HSA contributions, including employee payroll-deducted contributions through a cafeteria plan, are reported on Form W-2, Box 12, using Code W.