Annual Limit – FSA

Beginning January 1, 2013, flexible spending arrangements will be subject to an annual limit of $2,500.  This limit applies to annual salary reduction contributions made by employees to health FSAs offered under cafeteria plans.  Thus, by its terms, the limit does not apply to employer contributions to FSA or to any contributions made to HRAs or HSAs.  We are waiting on further guidance on this issue. 

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