How much do employers contribute to FSAs, HSAs or HRAs on average?

January 23, 2017
By

Category: Answers

2018 HSA contribution limit

The answer can vary widely, but the average annual employer contribution for Health Savings Accounts](http://www.treasury.gov/resource-center/faqs/Taxes/Pages/Health-Savings-Accounts.aspx) (HSAs) and [Health Reimbursement Accounts](http://www.zanebenefits.com/blog/bid/97288/Health-Reimbursement-Arrangement-HRA-What-is-it) (HRAs) is around $600 for individual employees, and $1,250 for employee family plans. According to the Employee Benefit Research Institute, around 67% of employees reported that their employers contributed to the account. Averages for [Flexible Spending Accounts are generally not available due to the many types of FSAs and their rules.

Average Employer Contributions to HSAs

Average annual HSA contributions for employers with fewer than 500 employees:

– Single employee: $750
– Employee with family: $1,200

Average annual HSA contributions for employers with more than 500 employees:

– Single employee: $500
– Employee with family: $1,000

Rules Affecting Employer Contributions to HSAs and HRAs

HSAs and HRAs have contribution caps, which influence their reported averages:

HSA (2017): Maximum contributions from both the employer and the employee are $3,400 for single employees, or $6,750 for employees with dependents enrolled in their insurance. There’s an additional “catch-up” contribution of $1,000 for participants age 55 and older.

HRA: There are no limits to the amount your organization can contribute to an employee’s HRA. All funding for HRAs is contributed by the employer.

Contributions to FSAs

The Affordable Care Act has had a big impact on FSAs in recent years, making the contribution statistics for Flexible Spending Accounts inconclusive.

As of 2017, the annual contribution limit for Medical FSAs is $2,600.

However, employer contributions don’t always count toward that limit, such as employer match contributions. You can consult a tax professional to determine what rules apply to specific situations for your organization and its employees.

FSAs that are used for child care expenses are subject to a different set of rules, and remain capped at $5,000.

Final Tips

Though average employee contributions for HSAs and HRAs range from $500 to $1,500, a complex set of regulations determines the limits for FSA contributions on a case-by-case basis. Average employer contributions also differ greatly between regions and industries.

Helpful Link:

Employer’s Tax Guide to Fringe Benefits – IRS.gov

About

Financial Products Specialist

Category: Answers


You might also like