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IRS Provides Guidance on $2,500 Limit on Health FSA Salary Reductions…

Courtesy of EBIA

IRS Provides Guidance on $2,500 Limit on Health FSA Salary Reductions, Clarifies Application to Non-Calendar-Year Plans

http://www.ebia.com/WeeklyArchives/Statutes/20911

The IRS has issued much-anticipated guidance regarding the $2,500 annual limit on health FSA salary reduction contributions. Health care reform added this limit to Code § 125, effective for "taxable years beginning after December 31, 2012," creating uncertainty over how this limit would apply to non-calendar-year plans. In addition...

IRS Notice 2012-40 (May 30, 2012)

Available at http://www.irs.gov/pub/irs-drop/n-12-40.pdf