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Is there any income limitations (individual or joint) for contributing to a flexible spending account that is used to reimburse medical expenses?

..IF
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Is there any income limitations (individual or joint) for contributing to a flexible spending account that is used to reimburse medical expens

We are limited to $2000/yr in our FSA.

I called HR Dept to inquire and they said that the limit reflects IRS rules, not our own (employer's) limits.

So I think that limit would apply to you as well.

- D
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We are limited to $2000/yr in our FSA.

I called HR Dept to inquire and they said that the limit reflects IRS rules, not our own (employer's) limits.

So I think that limit would apply to you as well.


DowDanny, this is good information to know, but it did not answer my question.

I am asking if there is any income limitions for being able to contribute to a FSA. The IRS has limitations on other pre- or post-tax contributions such as IRAs, 401k, and various tax credits. I don't want to contribute to a FSA to later find out that my income was to high.

Thanks.

..IF
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I believe the $2,000 limit is your employer's limit. The only limits for plans that i am aware of are for dependant care assistance.

Highly compensated participant can be limited for 125 cafeteria plans. I think the limitation is based on the level of contribution by non key employees. But, I think you have nothing to lose by participating in the plan. The money will just be added back to your taxable income. NOTE i am not sure about this info, but you should do more research. It my experience that the average HR dept is useless with complex plans. They will use an outside service. Hopefully you can get a number and call someone that specializes in FSA.

If the Fool has a FAQ on cafeteria plan I would read it thoroughly. They are the best benefit i know of.

Good luck,

Eg
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<<I am asking if there is any income limitions for being able to contribute to a FSA. The IRS has limitations on other pre- or post-tax contributions such as IRAs, 401k, and various tax credits. I don't want to contribute to a FSA to later find out that my income was to high.>>

As EG pointed out, the only limitation is the $5,000 for child care assistance. Other than that, the total amount of any FSA contributions are left up to the employer based upon the written plan. They can vary from employer to employer.

TMF Pixy might know more right off of the top of his head regarding cafeteria plans and FSAs. You might want to check him out.

TMF Taxes
Roy
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DowDanny writes (in part):

We are limited to $2000/yr in our FSA.

I called HR Dept to inquire and they said that the limit reflects IRS rules, not our own (employer's) limits.


I reply:

Hmmmm. If we're talking about a section 125 plan, my limit is $100 per paycheck, which in my case is $2400. We're a law firm and we have a tax department, so I assume that we got it right, so you might want to press your HR folks for chapter and verse. --Bob
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