Page 42 - Wages, Salaries and Other Earnings

Accident or Health Plan

Health Flexible Spending
Arrangements (FSA)

 If your employer provides a
health FSA that qualifies as an
accident or health plan, the
amount of your salary reduction,
and reimbursements of your Qualified HSA Funding Distribution.
medical care expenses, in most
cases, aren’t included in your You can make a one-time
income. distribution from your individual
 Note. Health FSAs are subject to a retirement account (IRA) to an HSA
limit on salary reduction and you generally won’t include any
contributions for plan years of the distribution in your income.

beginning after 2012.
 For tax years beginning in 2020,
the dollar limitation (as indexed
for inflation) on voluntary
employee salary reductions for
contributions to health FSAs is
$2,750.

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