In addition to participants and their family members, employers can contribute to employee health savings accounts (HSAs) on a tax-advantaged basis. Such contributions are considered employer-provided coverage of medical costs and are, therefore, excludable from the employer’s income. The 2023 limit for employee and employer contributions combined is $3,850 for individual accounts and $7,750 for family HSAs. These limits will rise in 2024 to $4,150 and $8,300, respectively. Note that a business generally can offer an HSA to employees who are covered under a high deductible health plan but no other health insurance. Contact us for specific details.
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