Employee Benefits Blog
Posts tagged flexible spending accounts
June 11, 2012
Under current law, there is no maximum amount that can be contributed annually to a flexible spending account (FSA) in a Section 125 cafeteria plan, although employers generally have voluntarily imposed annual limits to such contributions. Among its tsunami of provisions, the Patient Protection and Affordable Care Act of 2010 (the Act) imposes a $2,500 annual cap on contributions to an FSA. Last Thursday, the IRS issued Notice 2012-40, which contains numerous significant provisions regarding FSAs. This post will briefly discuss three of these provisions.