Who monitors the HSA limits? Will the IRS hold the agency responsible for employee maximum annual contribution limits?

Ultimately the employee is primarily responsible for ensuring that the amount contributed to the HSA is within federal guidelines. However, employers should have controls in place to prevent deducting more than the maximum HSA contribution amount. The custodian (PayFlex) cannot accept more than the family HSA limit plus the catch-up contribution.

HSA contributions in excess of the IRS annual contribution limits are not tax deductible and are generally subject to a 6% excise tax.

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