Q&A: Administrators: Administrative
« BackQuestion: An employee's spouse is enrolled in FSAs where he works. Can this employee still participate in our FSA plan?
Answer:
Both the employee and spouse can enroll in the Medical/Dental/Vision Care FSA with their respective employers. There is no limit set by the IRS on contributions to the Medical FSA.
The Dependent Care FSA is a different story, due to a $5000 annual IRS maximum per married couple. This maximum can be met entirely in one plan or jointly between 2 or more plans.
As a practical matter, the decision on plan enrollment may be influenced by:
- Plan Year - if the plans have different plan years, this may provide an opportunity to "time" contributions and reimbursements.
- Service - promptness of claims payment, and availability of various services and conveniences.
- FICA Savings - The couple may prefer for one employer to receive the tax savings from not making the employer FICA match; for instance, if one of the employers is a charitable organization.
Reminder! If an employee and a spouse choose to participate in separate plans, qualifying expenses for either FSA can only be reimbursed by one plan or the other. No double-dipping!
This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.
Some portions of an answer may reflect the specific administrative practices of our firm, and may not be universally applicable to all flexible benefit plans.
If you have further questions, please email us.