Compliance Overview: 2024 Year-end Checklist for Employee Benefit Plans

2024 Year-end Checklist for Employee Benefit Plans
Although the end of the year is a busy time, employers should continue to prioritize compliance requirements for their employee benefit plans. There are several benefits-related tasks that employers should make sure are completed by the end of 2024, such as:

• Submitting a gag clause attestation for their health plans (or confirming that an issuer or third-party administrator (TPA) submits the attestation).
• Amending plan documents for discretionary changes made for 2024.
• Confirming annual notices have been provided, such as the Children’s Health Insurance Program (CHIP) notice.
• Performing necessary nondiscrimination testing.

Employers should also take steps to prepare for 2025, including ensuring Affordable Care Act (ACA) compliance, updating benefit limits, and revising employee communications.

Year-end Checklist (2024):

1. Submit gag clause attestation by Dec. 31, 2024.
   • Fully insured plans may rely on issuers; self-insured plans must confirm attestations.
2. Confirm annual notices are provided, including CHIP and WHCRA notices.
   • Notices can be provided any time during the year but must be completed annually.
3. Amend plan documents for 2024 changes.
   • Include discretionary plan changes in official documents.
4. Remind employees about unused account balances.
   • Notify employees about forfeiture deadlines or carryover limits for FSAs, HRAs, and dependent care FSAs.
5. Complete nondiscrimination testing.
   • Applies to Section 125 cafeteria plans, health FSAs, HRAs, and retirement plans.
6. Update HIPAA privacy policies for reproductive health care protections.
   • Effective Dec. 23, 2024, stricter requirements apply to plans with access to sensitive health information.

Preparing for 2025:

1. Ensure ACA affordability compliance (ALEs only).
   • Adjust health plan contributions to meet the affordability threshold of 9.02% for 2025.
2. Update benefit limits for 2025:
   • HSA:
     • Self-only: $4,300 (up from $4,150)
     • Family: $8,550 (up from $8,300)
     • Catch-up: $1,000 (unchanged)
   • Health FSA:
     • Employee contribution: $3,300 (up from $3,200)
     • Carryover: $660 (up from $640)
   • HDHP:
     • Minimum deductible: $1,650 (self-only) and $3,300 (family)
     • Out-of-pocket maximum: $8,300 (self-only) and $16,600 (family)
   • 401(k):
     • Elective deferral limit: $23,500 (up from $23,000)
     • Catch-up contributions: $7,500 (unchanged, but $11,250 for ages 60-63)
   • Transportation Benefits:
     • Monthly transit/parking limits: $325 (up from $315).
3. Revise employee communications for 2025 changes.
   • Provide updated SPDs or summaries of material modifications.
4. Confirm compliance with MHPAEA for 2025.
   • Ensure plans meet mental health parity requirements and complete comparative analyses.
5. Prepare ACA reporting for 2024 coverage.
   • Distribute individual statements by March 3, 2025, and file returns electronically by March 31, 2025.

Provided by Apex Benefits
This Compliance Overview is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. © 2024 Zywave, Inc. All rights reserved.

Links and Resources:

• Gag Clause Attestation Instructions
• Model CHIP Notice
• MHPAEA Standards