FSA 2013 New Plan Limits

[Guest Stacey619]

The minimum FSA contribution limit effect December 31, 2012 is $2500.00. However while reading though the IRS notices for 2012-2013 changes I came across a section titled " What Contributions are Subject to the Limits" in this section it states " Non-elective employer contributions to a health FSA generally do not count towards this limit". Does this mean if an employer is contributing $2500.00 to and employees FSA as Flex Credits for the 2013 plan year, the employee may also elected $2500.00 salary reduction contributions?.

Thank you!

Stacey M...

[SLuskin]

To remain an excepted benefit, the employer contribution cannot exceed 2 times the employee contribution or $500, whichever is greater. The employee contribution is limited to $2500 for plan years which start 1/1/13 and after.

[Guest taxesquire]

If the employer contributes a set amount to the FSA, it does not count towards the limit. If the employer offers amounts for employees to allocate as they choose, I think the amounts allocated to the FSA will not count towards the limit if they are not cahsable flex credits. I'm not positive, though.