New Guidance on Health FSA Contribution Limits

The new $2,500 limit on salary-reduction contributions to health flexible spending arrangements (FSAs) will not apply to plan years beginning before 2013, according to new guidance released by the IRS.  In Notice 2012-40, the IRS clarified the timing of this new limitation, set a deadline by which plan amendments …

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Change in Wisconsin State Tax Treatment of HSAs

Although HSA contributions have received tax-favored treatment under federal law since 2004, until recently, Wisconsin was one of the few states in the country where contributions to HSAs did not receive tax-favored treatment for state tax purposes. However, last week, Wisconsin Governor Scott Walker signed into …

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Adult Children and HSAs

Due to the passage of health care reform, many more “adult children” will now be eligible for coverage under their parents’ group health plans, including high-deductible health plans  (HDHPs) coupled with Health Savings Accounts (HSAs). However, just because an adult child is covered under a parent’s HDHP …

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