Human Resources
The IRS Provides Relief to Non-Calendar Year Health FSAs | Aon

Like a Cool Summer Breeze, the IRS Provides Relief to Non-Calendar Year Health FSAs and Clarifies the $2,500 Limit

On May 30, 2012, the Internal Revenue Service (IRS) issued Notice 2012-40, which provides guidance on the application of the new $2,500 limit on salary reduction contributions to health flexible spending arrangements (health FSAs) imposed under the Patient Protection and Affordable Care Act (Affordable Care Act). As part of the guidance, the IRS also requested comments on whether to modify the use-or-lose rule that is currently set forth in the proposed regulations with respect to health FSAs. Comments are due August 17, 2012.

The Aon Hewitt bulletin below provides a summary of IRS Notice 2012-40 and details the provisions found in the guidance.

Click here to download the bulletin.