Tag: HFSA

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…