HSA Employee + Employer Contribution Limit

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WorkToLive
Posts: 616
Joined: Thu Nov 12, 2009 2:19 pm

HSA Employee + Employer Contribution Limit

Post by WorkToLive » Thu Nov 12, 2015 11:03 am

Does the HSA Contribution Limit apply to the full amount of employee AND employer contributions? I can't find the IRS statement that clarifies this.

Example, employee elects to contribute $6,750 to a 2016 HSA. Employer offers $900 of incentives in the form of HSA contributions throughout 2016. If the employee plans to use the incentive plan, should he reduce his planned contributions by $900 so as not to exceed the annual limit?

nyblitz
Posts: 354
Joined: Mon Apr 09, 2007 7:33 am

Re: HSA Employee + Employer Contribution Limit

Post by nyblitz » Thu Nov 12, 2015 11:04 am

Yes, my understanding is the limit is for the total of employee and employer, so you'd have to reduce your contribution.

engineer1969
Posts: 99
Joined: Tue Jul 05, 2011 6:56 pm

Re: HSA Employee + Employer Contribution Limit

Post by engineer1969 » Thu Nov 12, 2015 11:05 am

Yes, the combined total counts towards the limit. The funds added by your employer are immediately yours with no vesting required.

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AAA
Posts: 1040
Joined: Sat Jan 12, 2008 8:56 am

Re: HSA Employee + Employer Contribution Limit

Post by AAA » Thu Nov 12, 2015 11:11 am

The employer contribution counts toward the allowable limit.

WorkToLive
Posts: 616
Joined: Thu Nov 12, 2009 2:19 pm

Re: HSA Employee + Employer Contribution Limit

Post by WorkToLive » Thu Nov 12, 2015 11:23 am

Yes, I also agree that it counts, but can someone find this information on the IRS.gov website? I tried looking for 1/2 hour with no luck. I don't want to go to HR unless I have proof. HR rep told me that employer contribution can exceed the limit, just like 401k contributions. I don't believe it's true, but I need proof.

nordsteve
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Re: HSA Employee + Employer Contribution Limit

Post by nordsteve » Thu Nov 12, 2015 11:26 am

https://www.irs.gov/publications/p969/a ... 1000204045
Employer contributions. You must reduce the amount you, or any other person, can contribute to your HSA by the amount of any contributions made by your employer that are excludable from your income. This includes amounts contributed to your account by your employer through a cafeteria plan.

WorkToLive
Posts: 616
Joined: Thu Nov 12, 2009 2:19 pm

Re: HSA Employee + Employer Contribution Limit

Post by WorkToLive » Thu Nov 12, 2015 12:08 pm

Thank you!

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