An Employer or employee may contribute to a HSA using a cafeteria plan and the contributions are not subject to the statutory comparability rules. However, cafeteria plan nondiscrimination rules still apply. For example, contributions under a cafeteria plan to employee HSAs cannot be greater for higher-paid employees than they are for lower-paid employees. Contributions that favor lower-paid employees are not prohibited.
Add Comment Don't miss out leaving election dollars in a cafeteria by knowing the difference between grace period and run out period. A grace period is the # of days a member can still have a service after a plan year ends and be reimbursed. Run out period is the # of days to turn in expenses for reimbursement. No new services are allowed. Every plan is different, so check with your administrator. The main benefits to a cafeteria plan is the pre-tax savings. This means money elected to be ran through on a pre-tax basis avoids paying federal and state taxes. This is most know to apply to premium only plans (for insurance products), flexible spending and dependent care plans...but there are others as well. | WEBINARSReview MTO & COBRA Administration w/ PBI
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