QSEHRA contributions have no required minimum and are capped annually by IRS limits that vary based on employee coverage type (self-only vs. family).
What are QSEHRA contribution limits?
QSEHRA employer contributions are limited by IRS-defined annual maximums and have no minimum requirement.
Employers may choose any contribution amount up to the annual federal cap, but cannot exceed it without losing QSEHRA tax advantages on the excess amount.
What is the minimum contribution for a QSEHRA?
There is no IRS-required minimum contribution for a QSEHRA.
Employers may:
Offer no QSEHRA benefit ($0 allowance)
Offer a small monthly allowance
Offer any amount up to the federal maximum
Important constraint: If a QSEHRA is offered, it must be provided on consistent terms to all eligible employees, with limited variation only for:
Self-only vs. family coverage
Age (within IRS permitted ratios)
Not applicable: Employers cannot create different QSEHRA tiers based on job role, tenure, or employee class.
What is the maximum QSEHRA contribution limit?
QSEHRA contributions are capped annually by the IRS and adjusted each year for inflation.
2026 maximum QSEHRA limits:
$6,450 per year for employees with self-only coverage
$13,100 per year for employees with family coverage
These limits represent the total maximum tax-free reimbursement allowed for the plan year.
Not applicable: Employers cannot exceed these limits, even if employees have higher actual healthcare costs.
What are the monthly contribution limits?
Employers typically convert annual limits into monthly allowances for plan design.
2026 monthly equivalents:
Self-only coverage: $537.50 per month
Family coverage: $1,091.67 per month
If an employee becomes eligible mid-year, the maximum must be prorated based on eligible months only.
What happens if a QSEHRA exceeds the IRS limit?
If employer reimbursements go above the IRS maximum:
The excess amount is treated as taxable income to the employee
The arrangement may lose tax-free treatment for the excess portion
Employers may face compliance and payroll correction requirements
Not applicable: The entire QSEHRA is not disqualified—only the excess above the limit is affected.