Employer Sponsored HSA

[IRA]

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?

[IRA]

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?

[leevena]

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.

[IRA]

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?

[leevena]

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.

[four01kman]

In my communications for my clients, the annual limit is described. At no time is monitoring the amount discussed.