IRA Posted November 19, 2012 Share Posted November 19, 2012 If an employer establishes a salary-reduction HSA with employee contributions made through a cafeteria plan, and no employer funded contributions, should the employer monitor the employee's HSA maximum limit? If so, how does the employer know about the spouse's contributions? Link to comment Share on other sites More sharing options...
IRA Posted November 28, 2012 Author Share Posted November 28, 2012 If an employer establishes a salary-reduction HSA with employee contributions made through a cafeteria plan, and no employer funded contributions, should the employer monitor the employee's HSA maximum limit? If so, how does the employer know about the spouse's contributions? Does anyone have any thoughts? Link to comment Share on other sites More sharing options...
leevena Posted November 28, 2012 Share Posted November 28, 2012 I am not an expert on this, but I do know that the issue will between the employee and the IRS. I do not believe the employer has any liability, but only 95% confident. You may have a discrimination issue with the 125 plan, all depending on the size, take up rates, etc. Link to comment Share on other sites More sharing options...
IRA Posted December 3, 2012 Author Share Posted December 3, 2012 I am not an expert on this, but I do know that the issue will between the employee and the IRS. I do not believe the employer has any liability, but only 95% confident.You may have a discrimination issue with the 125 plan, all depending on the size, take up rates, etc. Thank you for your thoughts. Let me ask it another way. Does anyone tell participants in their open enrollment materials that the employer does not monitor the limit? Link to comment Share on other sites More sharing options...
leevena Posted December 3, 2012 Share Posted December 3, 2012 I am not an expert on this, but I do know that the issue will between the employee and the IRS. I do not believe the employer has any liability, but only 95% confident.You may have a discrimination issue with the 125 plan, all depending on the size, take up rates, etc. Thank you for your thoughts. Let me ask it another way. Does anyone tell participants in their open enrollment materials that the employer does not monitor the limit? I don't and I am not aware of anyone else who does. When the issue is brought up (usually with an employer) I tell them it is between the IRS and the employee. Usually the question is asked within the context of an employee who overcontributes due to the employee making a deposit outside the employer normal deduction/remittance process. Link to comment Share on other sites More sharing options...
four01kman Posted December 3, 2012 Share Posted December 3, 2012 In my communications for my clients, the annual limit is described. At no time is monitoring the amount discussed. Jim Geld Link to comment Share on other sites More sharing options...
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