Employee Benefits Blog

IRS Announces 2016 Health FSA, HSA, HDHP and Transportation Plan Limits

The IRS has announced cost of living adjustments for health flexible spending accounts (“health FSAs”) in Section 125 cafeteria plans, contributions to health savings accounts (“HSAs”), out-of-pocket maximums under high deductible health plans (“HDHPs”) and qualified transportation plan benefits for 2016. For 2016, the health FSA limit on voluntary employee salary reduction contributions will remain […]

November 17, 2015 | 1 min read | Tagged: contribution limits, Health FSA, HSA, IRS, out-of-pocket maximum, parking, qualified transportation, transit pass

Greg Gautam Partner

Carryover Confusion: Chief Counsel Clears Up Rules on Health FSA Carryovers

Earlier this year, I blogged about how the IRS modified the health flexible spending account (“health FSA”) “use-it-or-lose-it” rule to allow carryovers of up to $500 to subsequent plan years. This rule change caused some confusion. Employers were asking, “what happens to an employee’s eligibility to contribute to a health savings account (“HSA”) if they […]

April 18, 2014 | 2 min read | Tagged: Carryover, HDHP, Health FSA, HSA, IRS, Use-it-or-Lose-it

Kevin Hogan Former Associate

Don’t Lose Your Money – Employers Can Now Allow Their Employees to Carryover up to $500 of their Health FSA

Late last year, the IRS announced that it was modifying the health flexible spending account (“health FSA”) “use-it-or-lose-it” rule. Prior to the change, employees had to use the full balance of their health FSA by the end of the plan year or the money would be forfeited. This rule sometimes forced employees to unnecessarily spend […]

February 1, 2014 | 2 min read | Tagged: Carryover, Health Care, Health FSA, IRS, Use-it-or-Lose-it

Kevin Hogan Former Associate