On October 19, 2017, the IRS announced that the annual contribution limit for a Healthcare Flexible Spending Account (FSA) will be increased for 2018.
For 2018, employees will be allowed to contribute up to $2,650 into a Healthcare FSA.
Employers should ensure that their healthcare FSA will not allow employees to make pre-tax contributions in excess of $2,650 for 2018, and they should communicate the 2018 limit to their employees as part of the open enrollment process. Of course, employers are not required to change the contribution limit on their plan.
If you are a client of CBG Benefits that would like to take advantage of the new contribution limit, please contact our team at 781-759-1222. The staff at our employee benefits brokerage firm, headquartered in Massachusetts, would be happy to help you analyze your options.
In addition, we encourage all clients to read more about this change by downloading the Compliance Bulletin within our CBGconnect portal.