HSA...125 Plan

[MAMalody]

Can an HSA be a 125 cafeteria plan. Therefore when an employee makes a contribution it is actually deducted from theri payroll an dis actually considered employer contributoin rather than employee contribution, therefore having two Code Ws in box 12. One for employer contribution and one for employee through the 125. Just ran into this and my mind is too tired to grapple with it.

[Jesse]

I believe it is in the W-2 instructions and I guess the two code W's would work. I looked it up some time ago because I had an employee that said they did make the pretax contributions and the Employer contributed nothing. It confused me but according the the instructions it was correct. Found it:

http://www.irs.gov/instructions/iw2w3/ch01.html#d0e1923

Code W—Employer contributions to a Health Savings Account (HSA).
Show any employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria) plan) to an HSA. See Health Savings Account (HSA) on page 6.

[MAMalody]

I just found the same thing. Thanks so much for the help. I appreciate it.