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Showing results for tags 'flexible spending account'.
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Wondering if others have dealt with this idea or can anticipate any hurdles -- Say a company had a standard dependent care FSA program, no pre-tax employer contributions to the employee accounts. Company now wants to establish a fund for employer contributions but subject to taxes, for participating DC FSA employees but not directly to their DC FSA accounts (so to avoid any pre-tax issues plus to avoid being considered towards the employees' $5k/$2.5k contributions limit). Fund would be fixed per year at $xx total (decided at the beginning of the year or end of prior year), and then allocated between participants based on the # of participants in the prior plan year (as if it's a pool to be divvied up based on prior year participation). Eligible participants include anyone who participated in the prior plan year and is still employed at the beginning of the applicable year. Anyone seen this before, or something similar? So long as it's post-tax and not directly to their accounts, any hurdles? -
May an employer impose a minimum balance requirement on the amount that an employee/participant may carryover from year to year in an FSA? For example, can an employer require that to carryover a remaining balance at the end of year 1 into year 2 the employee must have a minimum carryover balance of $10? I have reviewed Notice 2013-71 and other guidance- there appears not to be a direct answer on this. Any thoughts would be appreciated.