The correction notice that is the subject of this document is under section 4980G of the Internal Revenue Code.

As published, the final regulations (T.D. 9277) contain errors that may prove to be misleading and are in need of clarification.

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Accordingly, 26 CFR part 54 is corrected by making the following correcting amendments:

Paragraph 1. The authority citation for part 54 continues to read, in part, as follows:

Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 54.4980G-0 is amended by:

1. Revising the entries for 54.4980G-4 Q-5 and Q-11.

2. Revising the entries for 54.4980G-5 Q-3.

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Q-5: Must an employer use the same contribution method as described in Q & A-2 and Q & A-4 of this section for all employees for any month during the calendar year?

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Q-11: If an employer makes additional contributions to the HSAs of all comparable participating employees who are eligible to make the additional contributions (HSA catch-up contributions ) under section 223(b)(3), do the contributions satisfy the comparability rules?

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Q-3: If under the employer’s cafeteria plan, employees who are eligible individuals and who participate in health assessments, disease management programs or wellness programs receive an employer contribution to an HSA and the employees have the right to elect to make pre-tax salary reduction contributions to their HSAs, are the contributions subject to the comparability rules?

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Par. 3. Section 54.4980G-4 is amended by:

1. Revising A-2 paragraph (c) of Example 2.

2. Revising A-2 paragraph (e) of Example 1.

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A-2: * * *

(c) * * *

Example 2. In a calendar year, Employer J offers its employees an HDHP and contributes on a monthly pay-as-you-go basis to the HSAs of employees who are eligible individuals with coverage under Employer J’s HDHP. In the calendar year, Employer J contributes $50 per month to the HSA of each employee with self-only HDHP coverage and $100 per month to the HSA of each employee with family HDHP coverage. From January 1^st through March 31^st of the calendar year, Employee X is an eligible individual with self-only HDHP coverage. From April 1^st through December 31^st of the calendar year, X is an eligible individual with family HDHP coverage. For the months of January, February and March of the calendar year, Employer J contributes $50 per month to X’s HSA. For the remaining months of the calendar year, Employer J contributes $100 per month to X’s HSA. Employer J’s contributions to X’s HSA satisfy the comparibility rules.

(d) * * *

(e) * * *

Example 1. In a calendar year, Employer K offers its employees an HDHP and contributes on a look-back basis to the HSAs of employees who are eligible individuals with coverage under Employer K’s HDHP. Employer K contributes $600 ($50 per month) for the calendar year to the HSA of each employee with self-only HDHP coverage and $1,200 ($100 per month) for the calendar year to the HSA of each employee with family HDHP coverage. From January 1^st through June 30^th of the calendar year, Employee Y is an eligible individual with family HDHP coverage. From July 1^st through December 31^st, Y is an eligible individual with self-only HDHP coverage. Employer K contributes $900 on a look-back basis for the calendar year to Y’s HSA ($100) per month for the months of January through June and $50 per month for the months of July through December). Employer K’s contributions to Y’s HSA satisfy the comparability rules.

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