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Barbara Weltman

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Increased Cap for Flexible Spending Accounts?

August 17, 2016 / By Barbara Weltman

According to the Kaiser Family Foundation, 17% of small firms and 74% of large firms offer health flexible spending accounts (FSAs). Currently, employee contributions to FSAs are limited to $2,500 adjusted for inflation ($2,550 for 2016). A bill in Congress (S. 3242) would raise the statutory cap to $5,000, plus an additional $500 per dependent over 2 dependents. It would end the use-it-or-lose-it feature by allowing for full carryovers of unused amounts.

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