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Core Documents Produces Video About Section 125 Health FSA Plans

What’s new with Health FSA plans in a post-ACA health insurance America?

Here’s an “Executive Summary” YouTube video about Section 125 Health FSA Plans.

A “Post-ACA Mandates” Section 125 Health FSA Plan means:

The Internal Revenue Service released Notice 2012-40 provides guidance on the application of the Affordable Care Act’s $2,500 limit on employee pre-tax contributions to health fsa’s. Effective for plan years after December 31, 2012 Health Care Reform (ACA, ObamaCare) limits Health FSA contributions to $3,050 per plan year (in 2023) for employee contributions. Employers may also contribute to a Health FSA (flex credits) in excess of the $$3,050.00 annual limit.

A cafeteria plan offering a health FSA will need to be amended to comply with the $3,050.00 limit. If a cafeteria plan that includes a Health FSA is not timely amended, it fails to qualify as a cafeteria plan or Health FSA and all employee elections of nontaxable benefits under the plan (e.g., health FSA salary reductions and health plan premium payments) must be included as gross income to the employees.

New $610 Carryover of Unused Funds for Health FSA plans in 2023

And, effective in plan year 2023, employers that offer FSA programs will have the option of allowing participants to rollover, or carryover up to $610 of unused funds at the end of the plan year.

Effective immediately, employers that offer FSA programs that do not include a 2.5 month grace period will have the option of allowing employees to roll over up to $610 of unused funds at the end of the current 2022 plan year.

From: IRS Modifies “Use-or-Lose” Rule for Health Flexible Spending Arrangements Press Release


IRS Notice 2013 -71 – Modification of “Use-or-Lose” Rule For Health Flexible Spending Arrangements (FSAs)and Clarification https://www.irs.gov/pub/irs-drop/n-13-71.pdf

health FSA Plan Document

Core Documents provides employers with everything they need to establish an IRS- and DOL-compliant Section 125 Health FSA plan in PDF format for just $129. This cost reflects a one-time setup fee, not an annual charge. For an additional $50, employers can choose the Deluxe Binder option that includes the PDF email version plus a printed plan document in a 3-ring binder.

$129 one-time fee in PDF via email**

$179 one-time fee in PDF email** + Deluxe Binder via USPS

Optional Administration Services Available

Core Documents will notify you when there are sufficient changes in the Code to require amending and restating your Plan.  You can amend and update anytime for just $99, and only when necessary which is the most cost effective way to establish and maintain a Section 125 Health FSA Plan.

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Most complete document orders placed by 3 PM will be emailed out the same day Monday through Friday. Orders placed on weekends are emailed out Monday morning. Keep in mind that December, January, and February are our busiest months of the year and documents are processed in the order they are received. The Rush Order fee ($25) simply brings your document to the top of the stack to be processed immediately.

gene ennis

“In a post-ACA health insurance America, with more out-of-pocket medical expenses, higher deductibles and co-payments, plus dental, vision, and Rx expenses, every employee should utilize the Section 125 Health FSA deduction to save money.” GCE

The President of Core Documents, Gene C. Ennis has held:

  • Certification in Flexible Compensation, (CFC) by the Employers Council on Flexible Compensation,
  • a 218 Life and Health Insurance license offering Section 125 plans since 1989,
  • a Third Party Administrator’s (TPA) license administering ERISA self-funded health and welfare plans,
  • a Professional Employer Organization (PEO) license with co-employer responsibility for 500 work site employees, and,
  • a PEO Controlling Person’s license.

Core Documents retains the services of several ERISA Benefit Attorneys for up to the minute commentary on issues affecting plan document language and administration. Our plan documents have been thoroughly reviewed by numerous CPAs and law firms who have found them to be clear, concise, compliant and cost effective.

Core Documents has been providing Section 125 Health FSA plans for small business owners since 1997. They would be happy to assist you in establishing your own custom Section 125 Health FSA plan document and administrative kit for only $129. Call us today at 1-888-755-3373 and talk to a Plan Consultant about how we can assist you and reduce your income tax liability.

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