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.
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.
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Read the Original Article: FSAs and Marriage