Last reviewed June 2026

Is there a cap on how much an employer can put into an ICHRA?

Short answer: No. Unlike a QSEHRA, an ICHRA has no maximum contribution limit; employers set the allowance, which can vary by employee class and by age or family size.

ICHRAs give employers full flexibility on funding: there’s no IRS maximum on the allowance. Employers decide how much to offer and may vary the amount across permitted employee classes and by age or number of dependents (within nondiscrimination rules). The allowance is tax-free to employees who have qualifying individual coverage. This open-ended design is a key difference from the QSEHRA, which has annual caps.

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Topic: ICHRAs