Maximum allowed employee contribution to health care slated to rise in 2015

Maximum allowed employee contribution to health care slated to rise in 2015

The maximum allowable employee contribution to the health care portion of a flexible spending account (FSA) will rise on January 1 from $2,500 to $2,550. The IRS announced the change as one of several inflation adjustments.

Since the beginning of 2014, employees have been allowed to carry over up to $500 in unused FSA funds to the next year and still contribute the maximum allowable amount for the year. Benefits experts expect the carryover option to be used more widely in 2015.

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