My employer will change from a July-June plan year for my fsa to a January to December plan year. I have already used up a 2500 dollar allowance for July 2015 to June 2016. What does this mean for the "transition" time period from July 2016 to December 2016? Will I get to put any more money in there at all? Will it simply be a division of the allocation made in July 2015 into two half year pots of Money? thus allowing me a half year allocation from July 2016 to December 2015?


1 Answer 1


Maximum FSA contribution amounts are set by the IRS. For tax year 2015 you are allowed to place no more than $2,550 (and same maximum for 2016) in an FSA account, tax-free.

Your employer's plan year is not relevant to the IRS for this purpose.

It's important to note that one interesting benefit to FSA accounts is the full amount of your annual contribution is available to you on the first day of the plan year; it is not a money-in money-out plan.

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