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Guest pon66
Posted

Could an employer establish a Health Care FSA and make only matching contributions ? For example: Employee A contributes $500 to the FSA Employer matches 2:1 or $1000. Employee B contributes less or nothing and receives the same proportionate match.

Is this OK. Employer wants to help those that need additional funds to pay for eligible expenses, but only if the EE will take some initiative/responsibility and contribute also.

If not OK. Ant other ideas.

Posted

I dont see anything wrong with the 2:1 matching. But you seem to be running the risk of overcontributions and therefore forfietures.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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