According to the IRS, what, if any, is the limit on the amount of money you or your employer can contribute to a flexible spending account in 2012?
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D) No limit
A) $2,000 maximum per employee
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B) $2,500 maximum per employee
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C) $5,000 maximum per employee
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D) No limit
Correct.
There is no limit the amount of money you or your employer can contribute to a flexible spending account in 2012, however the plan must prescribe either a maximum dollar amount or maximum percentage of compensation that can be contributed to the FSA.
Most employers use a $5,000 or below maximum per employee.
Flexible spending accounts are voluntary plans that enable you to pay for eligible out-of-pocket health care costs for yourself, your spouse and any eligible dependents – including elderly parents or adult children up to age 26.
Beginning in 2011, flexible spending account funds cannot be used for over-the-counter medicines unless prescribed by a doctor.
In 2013, under the Affordable Care Act, there is a $2,500 maximum limit on the contribution amount for FSAs.
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