Tag: HFSA

Question: A terminated employee took COBRA for the health FSA. Can he stop making after-tax COBRA contributions after three months, then just keep paying the 2 percent admin fee and continue accessing the account? Or does he have to make full contributions in order to use it, even on COBRA? Answer: Health flexible spending account…

Today, the Internal Revenue Service (IRS) announced annual inflation adjustments for more than 50 tax provisions, including an increase in voluntary employee contributions to employer-sponsored healthcare flexible spending arrangements (HFSAs) to $2,700 for plan years beginning in 2019, up from the 2018 limit of $2,650. The IRS also announced an increase in the 2019 monthly…

On October 19, 2017, the Internal Revenue Service (IRS) announced annual inflation adjustments for more than 50 tax provisions, including an increase in voluntary employee contributions to employer-sponsored healthcare flexible spending arrangements (HFSAs) to $2,650 for plan years beginning in 2018, up from the 2017 limit of $2,600. The IRS also announced an increase in…

Question: Can a new hire elect the total $2500 for his health FSA if he had an FSA at his last employer? Answer: A new hire can start a new $2,500 limit regardless of whether s/he participated in a different employer’s HFSA during the same year.  IRS Notice 2013-40 (http://www.irs.gov/pub/irs-drop/n-12-40.pdf) outlines the HFSA limit and how an…