10/01/2011
Question: An employee signed up for a cafeteria plan health flexible spending account (FSA). Last February, she had back surgery, which meant that she was reimbursed for the full amount of her annual election. She quit before the balance of her elective deferral could be withheld from her pay. Must we report the amount paid out to her from the FSA, but not yet deducted from her pay, on her W-2?
10/01/2011
For plan years beginning Sept. 23, 2011, unless the U.S. Department of Health and Human Services grants a waiver, group health plans that impose annual or lifetime limits on the dollar value of essential benefits are restricted to imposing an annual limit of $1.25 million.