Uncle Sam is calling: Key changes to tax-free savings accounts
Uncle Sam is calling, and U.S. companies are on the other end of the line. The reason for the call? Changes you’ll want to pay attention to if your business offers employees health savings accounts (HSAs), flexible spending arrangements (FSAs) or health reimbursement accounts (HRAs). These plans can help employees enjoy tax-free savings for hea lth expenses they incur.
To help employees take full advantage of these benefits, companies should know about the changing pre-tax deduction limit for FSAs. Starting in 2014, the amount an employee can withhold before tax for a flexible spending arrangement is reduced to $2,500. The limit is per employee, so two working spouses can each contribute up to $2,500 to an FSA.Learn more about Aflac's solutions