Limits on Employer Contributions to Health Care FSAs

Since employer contributions are set at the company level during plan setup, employees may elect a lower Healthcare FSA contribution than their employer. If the employer's contribution is greater than the employee's contribution, the total sum of the two amounts must not exceed the IRS maximum election for that plan year.

Employer contribution amounts are set during company plan enrollment, and cannot be changed until the end of the plan year.

Non-elective employer contributions to the health FSA, such as an employer match, seed contributions or flex credits, generally do not count toward the limit. For limits on employer contributions to Dependent Care FSAs, see this page.

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