Sponsors of Health FSAs Take Note: Increase in Contribution
Limit Effective for 2015.
As part of the Patient Protection and Affordable Care Act, the
annual limitation on health Flexible Spending Account (FSA) salary
reduction contributions was set at $2,500 effective for plan years
starting on or after January 1, 2013, subject to cost of living
adjustments. For the first time since its effective date, the IRS
has increased this annual limitation to $2,550 for 2015. Open
enrollment materials for 2015 plan years should inform employees of
this increase.
Employers whose 2015 open enrollment periods already have ended
must determine if their plan documents and open enrollment
materials provide for automatic adjustments to employee health FSA
salary reduction contributions based on this increase to the annual
limitation. If your open enrollment has ended, please contact a
member of the Troutman Sanders Employee Benefits and Executive
Compensation practice group to
