For Your Benefit

Flexible spending account limitation put off

By Jeffrey Ashendorf

Ford & Harrison LLP

One very popular employee benefit in recent years has been the healthcare flexible spending account (FSA), under which employees may elect to forgo taxable salary and instead receive tax-free reimbursement of eligible healthcare expenses. As part of the “healthcare reform” enacted by the Affordable Care Act (ACA), a $2,500 limit was placed on the amount of elective coverage (i.e., salary reduction contributions) that an individual could receive for a year under such a plan. The $2,500 limit was to be effective for “taxable years beginning after December 31, 2012”; in most cases, this would be for calendar year 2013.