Can employers make contributions to the Health FSA?
Yes, there are two options that employers can use when making contributions to their employees health FSA accounts. Match: The "Match" option allows the employer to match the participant's contribution dollar for dollar up to a maximum of $2,550. This is a non-elective contribution and can only be used for allowable medical expenses. Flat: The employer may provide a flat contribution to each participant not to exceed $500. An employer may also provide different amounts based on the level at which a participant is enrolled in the group health plan. (ie. the employer may provide a flat contribution of $250 for participants enrolled in Single/Employee Only coverage under the group health plan and may contribute $500 for participants enrolled in Employee Plus/Family coverage under the group health plan). This is a non-elective contribution and can only be used for allowable medical expenses.
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