The Affordable Care Act (ACA) imposes a dollar limit on employees’ salary reduction contributions to health flexible spending accounts (FSAs) offered under cafeteria plans. This dollar limit is indexed for cost-of-living adjustments and may be increased each year.
New Limits Announced
For the 2017 plan year, the health FSA dollar limit will increase to $2,600 from $2,550 in 2016. Employers may continue to impose their own limit, provided it does not exceed the limit set forth by the ACA.
You can learn more about the FSA dollar limit and what action steps need to be taken by plan sponsors HERE.
You can find more information like this on our Employer Benefit Resource page.
All insurance policies are different. Be sure to review your insurance policy for specific information about coverages available to you. Nothing in this post is meant to suggest a guarantee of coverage.