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Q.

Can both married spouses have flexible spending accounts? Does their combined contribution need to be under $5,000?

 

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Health Reform
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A.

FSAs are offered as an individual employee benefit, so each member of a married couple can have his or her own FSA account, assuming one is available to each separately at work.

FSAs allow employees to set aside salary, tax-free, to pay for health-care expenses not covered by insurance for themselves and their dependents. That includes deductibles, co-pays and co-insurance for medical and dental care.

FSA Limits

As of today, there's no maximum contribution set for health FSAs; it's left up to your employer to set one, and many employers do establish a maximum, says Anne Waidmann, a director of human resource services for Price Waterhouse Cooper. A $5,000 cap on contributions is most common. That means you and your spouse may currently be able to contribute $5,000 each, for a total of $10,000.

But health reform will usher in some changes for these tax-free accounts. Starting in 2013, for example, the maximum contribution an employee can make to an FSA will be $2,500.

"If an employee and spouse are both employed and earn more than $2,500 each, they can each contribute that amount to their FSAs, for a total of $5,000," Waidmann says.

Until that change takes effect, however, check with your employer to find out what the maximum contribution is for 2011 and 2012. ...

For a list of medical expenses covered by an FSA, you can check the IRS's website.

This answer should not be considered medical advice...down arrowThis answer should not be considered medical advice and should not take the place of a doctor’s visit. Please see the bottom of the page for more information or visit our Terms and Conditions.up arrow

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Read the Original Article: FSAs and Marriage