Are 2% Shareholders Eligible for HSA Salary Reduction? - HSA Awareness

As a 2% shareholder of a company, you may be wondering if you are eligible for an HSA (Health Savings Account) salary reduction. The answer to this question is yes, 2% shareholders are indeed eligible for HSA salary reduction contributions.

In order to qualify for HSA salary reduction as a 2% shareholder, you must meet certain criteria:

• Be considered an employee for tax purposes
• Receive reasonable compensation for services provided
• Not be classified as an independent contractor
• Have HSA salary reduction contributions reported as wages on your W-2 form

It's important to note that while 2% shareholders can participate in HSA salary reduction, there are limitations to the contributions they can make. The IRS imposes certain restrictions on how much a 2% shareholder can contribute to their HSA account.

If you are a 2% shareholder and are interested in setting up HSA salary reduction contributions, it's advisable to consult with a financial advisor or tax professional to ensure compliance with IRS regulations.

As a 2% shareholder of a company, you might be curious whether you can take advantage of HSA (Health Savings Account) salary reduction contributions. The good news is that yes, 2% shareholders can contribute to their HSA through salary reductions.