2015 Health FSA Limits

Effective for 2015 plan years, employers with health FSAs may increase the maximum limit on employees’ salary reduction contributions from $2,500 to $2,550.

Employer Limits

An employer may continue to impose its own dollar limit on employees’ salary reduction contributions to a health FSA, as long as the employer’s limit does not exceed the ACA’s maximum limit in effect for the plan year. For example, an employer may decide to continue limiting employee health FSA contributions for the 2015 plan year to $2,500.

Per Employee Limit

The health FSA limit applies on an employee by- employee basis. Each employee may only elect up to $2,500 in salary reductions ($2,550 for 2015), regardless of whether he or she also has family members who benefit from the funds in that FSA.

However, each family member who is eligible to participate in his or her own health FSA will have a separate limit. For example, a husband and wife who have their own health FSAs can both make salary reductions of up to $2,500 per year ($2,550 for 2015), subject to any lower employer limits.

If an employee participates in multiple cafeteria plans that are maintained by employers under common control, the employee’s total health FSA salary reduction contributions under all of the cafeteria plans are limited to $2,500 ($2,550 for 2015).

However, if an individual has health FSAs through two or more unrelated employers, he or she can make salary reductions of up to $2,500 ($2,550 for 2015) under each employer’s health FSA.

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The information provided is for informational purposes only and does not constitute legal advice. The information above contains only a summary of the applicable legal provisions and does not purport to cover every aspect of any particular law, regulation or requirement. Depending on the specific facts of any situation, there may be additional or different requirements. This is to be used only as a guide and not as a definitive description of your compliance obligations.