IRS Guidance on Health Savings Accounts

For all the companies out there trying to determine the exact rules of how much an employer may contribute toward Health Savings Accounts, and how to avoid violating non-discrimination rules, the IRS released this advice today:

http://www.treas.gov/press/releases/hp1056.htm

Employer matching contributions to the HSA through a cafeteria plan are not subject to the comparability rules, but cafeteria plan nondiscrimination rules apply. Contributions cannot be greater for higher paid employees than they are for lower paid employees, but contributions that favor lower paid employees are OK.

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