hsa non-discrimination tests

[Guest JoshmkII]

Hi there, I tried to search but couldnt come up with anything (that I thought) that could help.

I pretty much need a worksheet kind of thing to work out just how a company can give their key emps more inan hsa than other emps.

thanks

[pr2222]

First, if they are 2% shareholders in an "S" corp, the corporation can not make any HSA contributions for them (assuming they are 2% shareholders). Second, the comparability rules say you have to make the same contributions for everyone in the same category. However, if the HSA contributions are made pre-tax, then you only have to worry the discrimination rules under Code Section 125 which, depending on the size of the employer, could give you some flexibility in making higher contributions for the key employees.

[leevena]

One strategy would be to give them a bonus to cover the amount the employer would like to give to these employees.