On October 31, the IRS announced the new indexed Health FSA maximum for 2015 plans. In 2015, employees will be able to contribute up to $2,550 to the Health FSA for the plan year. The news comes at an inconvenient time as many calendar year plans have already distributed enrollment materials.
Plans that were allowing employees to contribute the previous maximum of $2,500 are already designed to allow the new maximum, and no plan amendment is necessary. Although not reflected on the data verification forms, January 1 plans that would like to allow participants to contribute the new maximum for the 2015 plan year can simply inform participants of the change and allow them to make a $2,550 election on their enrollment form. The data verification form for all plans renewing after January 1 will automatically include the updated maximum, if your plan currently allows employees to contribute $2,500. Those plans can simply acknowledge the change by signing and returning the data verification form as usual. No change will be made for plans that currently enforce a lower Health FSA maximum than $2,500. The maximum for those plans will continue to remain the same, unless we are notified otherwise.
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