Recent Posts

November 14, 2017
November 10, 2017
November 7, 2017
October 30, 2017
October 26, 2017
October 24, 2017
October 20, 2017

2018 Health FSA Maximum

Compliance_Corner_1.jpg

The IRS increased the Health Flexible Spending Account (FSA) maximum by $50 to $2,650 for plan years beginning in 2018.  The amount reflects the annual limit on an employee's contribution; see summary for more information. This and other inflation-adjusted items were announced in Revenue Procedure 2017-58.

WHAT THIS MEANS TO EMPLOYERS:  An employer can increase the annual limit from their current specified maximum by properly amending their plan.  However, if their plan document merely refers to the IRS limit as the maximum, the amount changes automatically; no amendment is necessary.

While reviewing your Health FSA (cafeteria plan) document, be sure to consider whether your plan needs other updates, e.g., expanding the list of events and status changes that permit mid-year election changes.  Also, remember to have your Health FSA (and other features of your cafeteria plan) tested for nondiscrimination compliance.