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Title 26, Internal Revenue CodeRelease 119-110

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

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

Last updated Sep 22, 2026|Official source

Summary

If an employer puts money into an employee’s health savings account (HSA) but does not follow the required rules for that year, the employer must pay a tax for that year. The same kinds of rules as in section 4980E apply. The Secretary must write regulations, including special rules for employers who also use Archer MSAs. When applying those rules to a worker who is not a highly compensated employee, highly compensated employees (defined in section 414(q)) are not counted as comparable participating employees.

Full Legal Text

Title 26, §4980G

Internal Revenue Code, Source: USLM XML via OLRC

(a)General rule
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
Rules and requirements similar to the rules and requirements of section 4980E shall apply for purposes of this section.
(c)Regulations
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)Exception
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

Sep 22, 2026

Release point: 119-110