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Posted

I'm looking at a situation where I THINK incorrect information was given, but I want to see if y'all agree.

Situation is this - Employer A sponsors a Section 125 plan, that offers various options, including contributing to an HSA. Participant "X" does not participate in A's HDHP, but is covered under the HDHP plan of her spouse, at Employer B. "X" is eligible for all options offered under A's 125 plan.

"X" is being told that she cannot contribute to an HSA under her employer's (A's) 125 plan, as IRS regulations prohibit this - because her HDHP coverage is under her spouse's (Employer B's) Plan.

I don't think this is correct. Agree/disagree? Am I missing something?

Posted

It’s been a long time since I learned this, and I cannot remember any source for you to reference, sorry.  But the employer is correct in denying the employees’ request.  I confirmed this with a friend in the HR department of a large, national company.  Like me, she could not remember the source, but her company would deny the request too.

Posted

I also am in agreement that this would be denied.   There are other ways the employee can solve the issue.  The only thing that might be lost is the employer contribution to the HSA on the employee's behalf.  But many spouses lose their own employer's benefits when they choose to be on their spouse's plan(s).

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