Tag: fsa maximum

Question: Is the new FSA maximum of $2,500 based on the calendar year or the plan year if it falls outside of January to December? Answer: This is based on the plan year, not the calendar year.  The IRS issued additional guidance (http://www.irs.gov/pub/irs-drop/n-12-40.pdf) that clarifies this issue as follows:  “Because employees make salary reduction contribution…