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Do Employer Contributions Count Toward the Contribution Limit That Applies to Health FSAs?


Often a cafeteria plan which includes a health FSA is funded solely by employee salary reductions. Employers can choose to add an employer contribution feature to the health FSA, such as a matching or seed contribution. Would these employer contributions count toward the limit that applies to health FSAs?

The statutory limit (which is $3,200 for plan years beginning in 2024, and $3,300 for plan years beginning in 2025) applies only to health FSA salary reduction contributions. However, employer contributions also raise other compliance issues.

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HHS Issues Updated Model Notices of Privacy Practices and Announces Part 2 Enforcement Program

HHS has updated its model Notice of Privacy Practices (NPP) materials to help covered entities and business associates comply with the Part 2 related NPP requirements that became enforceable on February 16, 2026.

02/26/2026

What Federal Mandates Apply to Our Company's Group Health Plan Other Than ERISA, COBRA, and HIPAA?

Many federal laws create mandates that may apply to your group health plan.

12/18/2025

IRS Guidance on Trump Accounts Addresses Cafeteria Plans and Employer Contributions, Announces Regulations on the Way

The IRS has announced that it intends to issue proposed regulations regarding Trump Accounts (TAs)

12/11/2025

Who Must Receive SPDs for ERISA Health and Welfare Plans?

QUESTION: We are reviewing the SPD procedures for our ERISA health and welfare plans and need some guidance. Who must receive SPDs for these plans?

12/02/2025

What Employees Are Counted for Purposes of COBRA’s Small Employer Exception?

QUESTION: We understand there is a small employer exception to COBRA for employers with fewer than 20 employees. What employees should we count for purposes of this exception?

12/02/2025