2017 QSEHRA Limit
For 2017, the QSEHRA Limit is $4,950 (Maximum payments and reimbursements) and $10,050 (Maximum payments and reimbursements, family coverage).
Effective 2017-01-01Source: Notice 2017-67 (IRS)Verified 2026-08-31
Who it applies to
Eligible small employers that do not offer a group health plan and their employees who use QSEHRAs to reimburse medical expenses or health insurance premiums.
What changed this year, and why
For 2017, the maximum amount a qualified small employer health reimbursement arrangement (QSEHRA) may pay or reimburse is $4,950 for self-only coverage or $10,050 for family coverage. These limits are set by the IRS and adjusted annually for inflation.
Common questions
- What is a QSEHRA?
- A QSEHRA (Qualified Small Employer Health Reimbursement Arrangement) is a tax-advantaged arrangement that allows eligible small employers to reimburse employees for medical expenses, including health insurance premiums.
The four things an arrangement must do to be a QSEHRA
The Cures Act states the criteria an arrangement has to meet before it counts as a QSEHRA at all. The first is about who funds it: the arrangement is funded solely by an eligible employer, and no salary reduction contributions may be made under it. An employee cannot route part of their own pay into a QSEHRA.
The Cures Act provides that a QSEHRA is an arrangement that meets the following criteria: (a) The arrangement is funded solely by an eligible employer, and no salary reduction contributions may be made under the arrangement;
Notice 2017-67 (IRS)
Which employers may offer one
An eligible employer is one that does not offer a group health plan to any of its employees. The exclusion is read broadly: a health reimbursement arrangement and a health flexible spending arrangement each count as a group health plan here, so an employer offering either of those cannot also provide a QSEHRA.
Under section 9831(d)(3)(B)(ii), “eligible employer” means an employer that does not offer a group health plan (including a health reimbursement arrangement (HRA) or a health flexible spending arrangement (FSA)) to any of its employees.
Notice 2017-67 (IRS)
The same-terms rule, and who may be left out
A QSEHRA has to be provided on the same terms to every eligible employee of the employer. It is not a benefit an employer can extend to some staff and withhold from others.
Under section 9831(d)(2)(A)(ii), a QSEHRA is an arrangement that is provided on the same terms to all eligible employees of the eligible employer.
Notice 2017-67 (IRS)
What the employer reports on Form W-2
What goes on the Form W-2 is what the employee was entitled to receive, not what they actually claimed. The employer reports the payments and reimbursements the eligible employee is entitled to receive from the QSEHRA for the calendar year, in box 12 of the Form W-2, using code FF.
Answer 57: The eligible employer must report the amount of payments and reimbursements that the eligible employee is entitled to receive from the QSEHRA for the calendar year in box 12 of the Form W-2 using code FF, without regard to the amount of payments or reimbursements actually received.
Notice 2017-67 (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Notice 2017-67 (IRS)
- Maximum payments and reimbursements
The indexed dollar limits for 2017 are $4,950 for self-only coverage and $10,050 for family coverage.
- Maximum payments and reimbursements, family coverage
The indexed dollar limits for 2017 are $4,950 for self-only coverage and $10,050 for family coverage.