PRIA Logo™
Title 26 — Internal Revenue CodeRelease 119-73

§4980G Failure of Employer to Make Comparable Health Savings Account Contributions

Title 26 › Subtitle Subtitle D— Miscellaneous Excise Taxes › Chapter 43— QUALIFIED PENSION, ETC., PLANS › § 4980G

Last updated Apr 6, 2026|Official source

Summary

An employer who contributes to any employee's health savings account during a year must follow comparability rules, contributing on similar terms for comparable employees, or pay a tax for failing to do so. The rules and requirements work like those for Archer MSA contributions under section 4980E. One exception: when applying those rules to contributions for employees who are not highly compensated, the employer does not have to count highly compensated employees as comparable.

Full Legal Text

Title 26, §4980G

Internal Revenue Code — Source: USLM XML via OLRC

(a)In the case of an employer who makes a contribution to the health savings account of any employee during a calendar year, there is hereby imposed a tax on the failure of such employer to meet the requirements of subsection (b) for such calendar year.
(b)Rules and requirements similar to the rules and requirements of section 4980E shall apply for purposes of this section.
(c)The Secretary shall issue regulations to carry out the purposes of this section, including regulations providing special rules for employers who make contributions to Archer MSAs and health savings accounts during the calendar year.
(d)For purposes of applying section 4980E to a contribution to a health savings account of an employee who is not a highly compensated employee (as defined in section 414(q)), highly compensated employees shall not be treated as comparable participating employees.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2006—Subsec. (d). Pub. L. 109–432 added subsec. (d).

Statutory Notes and Related Subsidiaries

Effective Date

of 2006 Amendment Pub. L. 109–432, div. A, title III, § 306(b), Dec. 20, 2006, 120 Stat. 2951, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2006.”

Effective Date

Section applicable to taxable years beginning after Dec. 31, 2003, see section 1201(k) of Pub. L. 108–173, set out as an

Effective Date

of 2003 Amendment note under section 62 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 4980G

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73