FSA Maximum Election Amount Increased

 FSA Maximum Election Amount Increased for 2015 Plan Year

This is hot off the press. We are running some loose ends to ground so watch for a full e-mail on Monday from BeneFLEX HR Resources with instructions if you want to make the change to increase your FSA election maximum.

The new annual limit for health FSAs, including general-purpose and limited-purpose health FSAs, is $2,550 for plan years starting on or after January 1, 2015. – The IRS released Thursday annual inflation adjustments for 2015, including the following:

  • Health Flexible Savings Arrangements (FSA) Salary Reduction Limit: $2,550
  • Transportation:
    • Parking: $250
    • Transit: $130
  • Adoption Assistance: $13,400

The $2,550 limit is prorated for short plan years (plan years that are shorter than 12 months) and any carry over amount from participants’ previous plan years may be added to the limit. For instance, participants may elect $2,550 for the 2015 plan year and carry over a maximum of $500 from the previous plan year, making their total account value $3,050 for the 2015 plan year.  In other words, the $500 carryover does not count against or affect the $2,550 salary reduction limit.

You can read the entire release here and IRS Revenue Procedure 2014-61 here.

Sincerely,

 

The BeneFLEX Team