Workers May Enjoy Wider Range of Benefits Plans for Allocating Employer Contributions
The Internal Revenue Service (IRS) has taken the position that employers may incorporate health savings accounts (HSAs) and student loan payments among the allocation options for employer contributions offered outside of cafeteria plans. Quick Hits Employers may include HSAs and student loan payments among their employees’ allocation choices for employer contributions to benefit plan s. Some employers provide flexibility with regard to the allocation of their employer contributions among benefit plans as a way to enhance recruiting and retention. New contribution limits will kick in for HSAs and health reimbursement arrangements (HRAs) for 2025. Many employers and HR professionals have finished the open enrollment period for the 2025 plan year and are beginning t o make the next strategic decisions about their benefit plans for the future. A recent clarification in IRS policy permits employers to offer a broader range of options for allocations of employer contributions among ben...