I understood that when an HSA account was listed as benefit under a cafeteria plan arrangement, that it had to adhere to the rules of the cafeteria plan. Being locked in for the plan year unless a "Change of Status" occurs.

Am I correct that this has since changed? Is it a fact that an HSA contribution can be changed at any time by the participant?

If this is correct, can someone tell me where I can find this information so I can provide a copy to our processor?

I would very much appreciate your guidance.

Thank You

The proposed regulations under IRC 125 include the provision which allows employees to make prospective changes to their HSA elections that are made through a cafeteria plan. Employees must be allowed to make changes at least monthly, but can be allowed to change more frequently. They are not required to have any type of change in status for HSA contributions.