The Affordable Care Act imposes a $2,500 limit on employees’ salary reduction contributions to a health FSA. This $2,500 limit is indexed for cost-of-living adjustments. On Oct. 30, 2014, the IRS announced that, for taxable years beginning in 2015, the dollar limit on employees’ salary reduction contributions to a health FSA will be $2,550, an increase of $50 from the amount for 2014. The attached Health Care Reform Compliance Bulletin explains the increase to the health FSA limit for 2015.

Please contact your Stellar representative with further questions regarding this information.

HCR Health FSA Limit Will Increase for 2015