Tag: employee contributions

Question:  Does the 2013 FSA contribution cap of $2500 apply to the employee salary reduction contributions only, to the employer contributions, or both? Answer: Under the IRS regulations (http://www.irs.gov/pub/irs-drop/n-12-40.pdf), the statutory $2,500 limit under § 125(i) applies only to salary reduction contributions under a health FSA, and does not apply to certain employer non-elective contributions…