Annual Limits

[Guest Sara H]

If an employer has a deferral limit of $4000/yr on their medical spending account & they have a married couple who are both employees of the employer, what is the annual limit each spouse can defer? Does each spouse get to defer up to $4000/yr or does the IRS limit them to $4000/yr as a combined total?

[Lisa Hand]

Unlike the Dependent Care Assistance benefit, the Internal Revenue Service does not set a maximum for medical flexible spending accounts, that is set by the employer's plan document.