FSA

Client Profile: City of Winston-Salem HR Department Promotes Service Through Its Own Example to Staff

Personnel management in the public sector is a little different, explained Carmen Caruth, human resources director for the City of Winston-Salem.

The positive part, she explained, is that “you really are a public servant. Every day, we meet the needs of the people [city employees] who meet the needs of people [the citizens]. I’ve never had a job where I directly impact people’s lives like I do in this job. We get to do good every day.”

Health FSA Maximum Increases to $2,600 in 2017

On Tuesday, October 25, 2016, the IRS released Revenue Procedure 2016-55, which included a $50 inflation-adjustment increase on voluntary employee salary reductions for contributions to a Health FSA. 

For an FSA plan year beginning or renewing on or after January 1, 2017, the maximum contribution amount increases to $2,600 per participant per plan year for Full Purpose and Limited Purpose Health FSAs.

This is the maximum allowed per IRS regulations. If desired, an employer may choose to set a lesser amount as the Health FSA maximum for their company-sponsored plan.

Flexible Spending Account (FSA) Update

The U.S Treasury Department announced yesterday that it is making a change to the IRS Use-it-or-Lose-it Rule for FSA accounts. (This is the rule that says participants forfeit any unspent funds after a plan year ends.) This change will allow an employer to offer either a $500 maximum carry-over of unspent FSA funds or the optional 75 day Grace Period, but not both.
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