Flexible Spending Account

[Guest JFBEARB]

Is there a limit on the amount an employee may contribute to a Health FSA?

Is the contribution limit on a Dependent Care Assistance Program still limited to $5,000.00?

[papogi]

DC limit is still $5000. There is no fed limit for HC, but there are concerns for the employer in setting their own limit. Among them, the company doesn't want the limit to be so high that discrimination testing and risk of loss go up (employee may clear out account and terminate employment). $1000 to $2500 is typical for HCFSA's.

[Guest JFBEARB]

Thank You.

Can you recommend a "Good" Cafeteria/Welfare/FSA reference manual or Answer Book?

We have the Pension Answer Book for qualified plans, but I would be really interested in ordering an Answer Book for Cafeteria/Welfare/FSA also.

[Guest MSMA]

In my experience, we have found the "Flex Plan Handbook" by Thompson Publishing Group to be an extremely useful tool. Not only do they supply regular updates, but I have also called them twice in the past six years when we were stumped by a situation. (And before I found this great bulletion board!)

Customer Service: 1-800-677-3789

Shortly after I started learning the ropes here, my supervisor left for other employment leaving me to learn on my own essentially. The Flex Plan Handbook was my saviour as it is written in layman's terms.

***

As for your original question - another aspect you may want to consider is discouraging very small elections. We have had people want to elect $100 for new glasses - but end up paying $36 in administrative (after tax) fees!

[papogi]

I second the opinion on Thompson's manuals.

[SLuskin]

We very much like EBIA's Cafeteria Plan manual.

[QDROphile]

EBIA rules.

[Kirk Maldonado]

I much prefer the Tax Management Compensation Planning Journal on cafeteria plans.

[Guest Magilla91]

Are there any reasonably priced books which describe cafeteria plans/adminstration? The ones recommended cost hundreds of dollars and I was looking for something in a lower price range!

Thanks!

[mroberts]

Most of them are going to cost $200 to $300. If you currently work with a broker now, I would just run everything through them or your plan administrator or whoever else is involved in your employee benefits, as long as you trust them. This way, someone else does all the work for you when it comes to changes in compliance and the like.

[Guest Magilla91]

Well, um..you see....I AM the benefits coordinator! This is a very small company and I was pretty much told by the owner (my dear husband) to figure this out! Hence, I thought a good book might be useful. Not sure what a "broker" would do but we have coordinated with a company that prepares the plans documents and helps to make sure we are in compliance with the law. They are probably all we need at this point but I would like to get myself smart on the subject matter as well. I appreciate your reply.