Late last week, the IRS announced some good news for Flexible Spending Account (FSA) participants: the maximum FSA contribution will increase by $50.00 (as of January 1) for a 2015 pre-tax contribution limit of $2,550.
When the Affordable Care Act enacted the $2,500 max contribution for FSA plan years beginning after December 31, 2012, guidance specified that the maximum would be indexed for inflation beginning in 2014.
published in August by Buck Consultants anticipated that the change was coming, stating that as of July the Consumer Price Index had risen to $2,583 and when rounded down to the nearest $50, the 2015 limit should increase to $2,550.
A couple of notes regarding the $2,550 2015 FSA maximum:
The limit applies to employee salary reduction FSA contributions only. Employers may choose to contribute to an FSA in excess of the maximum.
The limit applies to the FSA plan year vs. calendar year.
The limit is on a “per account" basis. If a husband and wife both have access to an FSA through their respective employers, they could each contribute $2,550 in 2015, resulting in a household FSAcontribution of $5,100.
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A Flexible Spending Account pays for many types of out-of-pocket health care costs, including Lasik. Also, an FSA can be applied to co-pays at the doctor's office, specialty medical services such as acupuncture, and thousands of medical products and supplies found at FSAstore.com.
An FSA covers eye care – eyeglasses, contact lenses, contact lens solution, and yearly eye exams. The IRS approves laser eye surgery to treat vision problems including through LASIK (laser eye surgery). FSA Eye Care