Tax Facts

8833 / Is there a penalty if an employer fails to meet the HSA comparability requirements with respect to contributions to employee HSAs?

Updated: November 20, 2024 at 08:14 AM
If an employer fails to meet comparability requirements (see Q 8830), a penalty tax is imposed, equal to 35 percent of the aggregate amount contributed by an employer to HSAs of employees for their taxable years ending with or within the calendar year.1




1.  IRC §§ 4980E(a), 4980E(b), 4980G(b). For filing requirements for excise tax returns, see Treas. Reg. §§ 54.6011-2 (general requirement of return), 54.6061-1 (signing of return), 54.6071-1(c) (time for filing return), 54.6091-1 (place for filing return), and 54.6151-1 (time and place for paying tax shown on return).


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