DCAP and MFSA limits and Employer Contributions

[bcspace]

If the employer contributes to an employee's DCAP, can the employee elect the full $5000 out of their own check and then add the employer's contribution on top of that?

Similarly, if the employer limits the MFSA election to say, $3000, and also contributes to an employee's MFSA election, can the $3000 limit be exceeded by the total election?

[J Simmons]

If the employer contributes to an employee's DCAP, can the employee elect the full $5000 out of their own check and then add the employer's contribution on top of that?

No, the $5,000 for 2 or more (or $2500 for 1) dependent is a hard dollar cap, regardless of who is bearing the cost.

Similarly, if the employer limits the MFSA election to say, $3000, and also contributes to an employee's MFSA election, can the $3000 limit be exceeded by the total election?

That would depend on how the plan document reads.

[LRDG]

The $2,400.00 cap for one dependent or $5,000.00 cap for 2 or more dependnts are limits for income tax filing purposed, not caps for DCFSA.

The only limit on a Sec. 125 DCFSA is $5,000.00, regardless of the number of dependents. (Other limits that may apply to couples filing jointly when one parent is a full time student or disabled or working part time.)

The $5,000.00 maximum is the total combined employer and employee amount for both benefits paid and contributions to the DCFSA.

The MFSA maximum contributions and benefits amount must be stated in the plan document, but there is no hard dollar amount limititation imposed by IRS.

If the MFSA includes ER credits, the employer credit allocation must be stated in the PD. The MFSA maximum employee contribution/benefit must be stated in the plan document.