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Can you double up on FSA contributions?

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in Small Business Tax,Small Business Tax Deduction Strategies

Q. In a recent article ("New directions for health care flexible spending accounts"), you said the new $2,500 FSA limit is on an individual basis. Does this limit apply separately to a married couple? C.M., Beaverton, Ore.

A. Yes, but only if they are each eligible to participate. Otherwise, the $2,500 limit is the total amount a couple can contribute to a flexible spending account (FSA) for health care expenses, beginning in 2013. For instance, if each spouse has an FSA for the same or different companies, they can contribute up to $5,000. But the limit is $2,500 if one spouse participates and the other doesn’t.

Tip: Guidelines for the new rules are provided in IRS Notice 2012-40.

{ 1 comment… read it below or add one }

Sergei Kogut May 13, 2013 at 11:44 am

Yes, both spouses can opt into an FSA, up to the full amount of $5,000 per family. You can’t however apply both to the same expense, you would need to pay close attention to both balances and think about which account should pay for which expense.


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