LBL Resources
Compliance Alert: SBC Finalized Guidance
February 13, 2012
As explained in our August 2011 article, the health care reforms enacted in March of 2010 will require employer health...
Department of Labor Finalizes, Delays 401(K) Fee Disclosure Rules
February 3, 2012
After months of delay, the Department of Labor (DOL) has just released final regulations under Section 408(b)(2) of...
New Year Brings Extra W-2 Duty for Many
January 25, 2012
New Year Brings Extra W-2 Duty for Many Although 2012 is just getting started, many employers are already looking ahead...
Employer Compliance Alert
January 23, 2012
More IRS Guidance on W-2 Reporting of Health Coverage Among the provisions contained in the 2010 Patient Protection and...
Insurance, Employment, & Financial Services
Flexible Spending Accounts Contributions
An important reminder for those of you who utilize Flexible Spending Accounts (FSAs):
Beginning on January 1, 2013, the maximum contribution allowed to a FSA will be $2,500 per year (note that this limitation only applies to MEDICAL FSAs; dependent care and other limited-purpose FSAs are NOT subject to this limitation). This cap is per individual; a husband and wife each working at two different companies may both take part in their company’s FSA Plan at the $2,500 cap, potentially providing them with a total of $5,000 in medical FSA contributions.
However, we wanted to draw your attention to the fact that this cap will affect ANY FSA that has a plan year ending after 1/1/2013. In other words, if your FSA plan year does not run on a true calendar-year (for example, February 1 through January 31), you will likely need to amend your plan on the first day of the pre-1/1/2013 plan year in order to avoid contributing more than $2,500 over the course of that plan year.
Should your FSA be subject to the above (or, you have general questions regarding this matter), please feel free to contact our Compliance Consultant, Michael Cramer, at (714) 236-8270.