Tag: fsa

Ask the Experts: Using a Health FSA on COBRA | PA Benefit Advisors

Question: A terminated employee took COBRA for the health FSA. Can he stop making after-tax COBRA contributions after three months, then just keep paying the 2 percent admin fee and continue accessing the account? Or does he have to make full contributions in order to use it, even on COBRA? Answer: Health flexible spending account … Continued

How to Make the Most Out of Your FSA at Year-End | PA Benefit Advisors

As 2017 comes to a close, it’s time to act on the money sitting in your Flexible Spending/Savings Account (FSA). Unlike a Health Savings Account or HSA, pre-taxed funds contributed to an FSA are lost at the end of the year if an employee doesn’t use them, and an employer doesn’t adopt a carryover policy. … Continued

IRS Releases Tax Benefit Inflation Adjustments for 2014

Internal Revenue Service (IRS) Revenue Procedure 2013-35 provides the cost-of-living adjustments to certain items for 2014 as required under the Internal Revenue Code. This revenue procedure includes updates for numerous items including:

Health FSA Rule Change Explained

Under the new rule, a plan may — but is not required to — allow participants to carryover up to $500 in unused contributions to the next plan year. The $500 carryover does not count against the maximum employee contribution to an HFSA of $2500 per year.

FSA use-it-or-lose-it rule changed!

The U.S. Department of the Treasury and the IRS on Thursday issued a notice modifying the longstanding “use-or-lose” rule for health flexible spending arrangements. Participants now can carry over up to $500 of their unused balances remaining at the end of a plan year.

What you may not know about your FSA

Now is the perfect time for HR managers to keep details of FSAs top of mind and help employees understand the fine print so they recognize why enrolling this fall is the smart financial decision.

 

Fairmount Benefits Company

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