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We are an organization that offers health insurance to all of our employees, paying all or almost all of the employee only premium options and not contributing very much additional premium for family, children and spousal levels. We also provide $140 a month in HSA employer contribution to the employees who elect our HDP (HSA eligible plan). Essentially, we pass the cost savings of the lower premiums on to our employees through this contribution. The HSA plan is part of our Section 125 plan. We have one employee who can be much better off financially to obtain a HDP for his wife and himself on his own, directly from an insurance carrier (even considering his premiums will now be post tax). Our HSA administrator will not allow him to participate in our Section 125 HSA payroll deductions and therefore will not allow him to receive the $140 a month in employer HSA contributions. They claim this is because they have no way of confirming his actual eligibility regarding participation in an HSA account. Our question is whether or not we can make a $140 contribution directly to his HSA account and what the ramifications of that would be. We know that Employer Contributions without a Section 125 Plan are allowable (assuming comparability rules are met, etc.). Having said that, we wonder if, by having a HSA as part of a Section 125 Plan, we are precluded from also have HSA Contributions that do not relate to the Section 125 Plan. We would make this opportunity available to all employees (all who participate in a different HDP plan would be able to receive the contribution) and in the same monthly amount as those inside the Section 125 Plan (both sides would receive the $140). It seems silly to force the employee to pick an employee plan with us and an individual spouse plan with the insurance company just so that he can get our $140 a month, something that will happen in this case and cost our company a lot more money. Any thoughts would be appreciated.