Does an employer have to make contributions to an employee’s HSA?
No, employers are under no obligation to make any contributions to their employee’s HSAs. Many employers find that making a contribution may help improve employee acceptance of adopting an HSA plan especially if they are transitioning from a more traditional type of health coverage. If an employer elects to contribute to an HSA outside of a cafeteria plan, the contributions must be comparable. We have developed a simple worksheet that helps you evaluate comparability: view our Employer Comparability Worksheet.
Related Questions
- Can an employee be eligible for other coverage from an employer and still be eligible to make or receive contributions to an HSA?
- Does an employer have to meet any nondiscrimination rules if it makes contributions to an employees HSA?
- Can an employer’s contributions to an employee’s HSA be deposited directly into mutual funds?
