HSA contributions - HCE is only 1 with family

[Spencer]

Clients wants to contribute max for individual and family. HCE is the only one with a family. Is this discriminatory? or is it okay because it is offered to all?

could the employer contribution be 100% of deductible for everyone and be okay? rather than a specified dollar amount?

thanks!!

[leevena]

Clients wants to contribute max for individual and family. HCE is the only one with a family. Is this discriminatory? or is it okay because it is offered to all?

could the employer contribution be 100% of deductible for everyone and be okay? rather than a specified dollar amount?

thanks!!

Based on what you have outlined, the employer is ok because the contribution is available to all other employees. If there is a 125 plan being used, you will need to test for that.

As for the contribution amount, I would suggest they determine a specified dollar amount, not a "100% of deductible" amount. Remember, there could be employees who have an non-employer sponsored hdhp and regulations require that the employer also contribute to that persons' plan. What if that person's hdhp has a different deductible, opening the employer to more cost than expected.