500
Assume plan year is 2016. Diana is an employee with RSI, formerly known as Allied Waste.
YSA requested documents from Diana for a YSA card claim, However Diana was busy with her newborn and was not able to read the notifications from YSA.
After 45 days YSA denied her claim and account went in to OP.
Today is October 2017 and Diana calls in to YSA what should she be advised?
What is Overpayment is not rectified by year-end deadline, amount may be reported to the IRS as taxable income and there may be tax implications or the employer may garnish wages.
Instruct participant to seek advice from a Tax Advisor.