FSA / HRA / HSA
FSA Reimbursement for Non-Covered Spouse
Health FSA funds may generally be used to reimburse eligible medical expenses for a spouse or qualifying dependents even if they are not enrolled in the employer's health plan.
FSA / HRA / HSA
Question of the Week - Maximum HFSA Contribution
Q.- We are going to offer a health flexible spending account plan to our employees starting 1/1/2026. We know there is a risk of loss if an employee gets the full reimbursement
Q.- We are going to offer a health flexible spending account plan to our employees starting 1/1/2026. We know there is a risk of loss if an employee gets the full reimbursement early in the year and then terminates employment. For this reason, we don’t want to allow the maximum IRS contribution limit. Can we operate our plan with a lower maximum contribution?
A.- Absolutely. You can structure your plan to allow any contribution amount so long as it does not exceed $3,400 for the 2026 plan year. If you are concerned about the risk of loss, perhaps implement a lower maximum contribution limit and see how the year plays out.
Benefit Allocation Systems (BAS) provides online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 integrates with major insurance carriers for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and others), and with leading payroll platforms for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and others).
This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
Topics
COBRA
COBRA Offering to Retirees
When a covered employee becomes entitled to Medicare before retiring, a covered spouse may receive up to 36 months of COBRA continuation from the date of Medicare entitlement.
COBRA
COBRA Offering to Retirees
When a covered employee becomes entitled to Medicare before retirement, the spouse may be eligible for up to 36 months of COBRA continuation coverage.