Tax Law changes - 2013
Flexible Spending Accounts
The healthcare reform law passed in 2010 places new limits on the amount employees can put aside in a flexible spending account . Beginning in 2013, workers will be able to put aside only $2,500 in their flexible spending accounts. After 2013, that $2,500 FSA limit will be adjusted each year for inflation, but it is still a significant drop from the maximum many employers now allow. The changes to flexible spending accounts starting in 2013 apply whether you use the plan to cover just you or you and your whole family. Since the combined out-of-pocket healthcare costs for a family could exceed the $2,500 limit, employees who need to save might want to look at opening a health savings account (HSA), as well as a flexible spending account. With an HSA, you can put aside money and get a deduction when you do your taxes
Note If you need professional help with "Tax Law changes - 2013" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.