Can employers provide different contribution amounts to different employees in an HSA?
Employers can provide different contribution amounts to different employees; however, contributions made outside of a Section 125 Cafeteria Plan are subject to comparability, which severely limits the employers' flexibility with contributions. If the contributions are made inside the Section 125 plan, they are subject to non-discrimination rules, but are allowed much more flexibility, such as allowing employer matching contributions. Before undertaking any contribution strategy based on medical outcomes, we highly recommend that the employer consult a qualified benefits attorney.
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HSA FAQ Resource
Find answers to your most common HSA questions in our comprehensive HSA FAQs section.