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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: ETBen on May 31, 2016, 08:56:24 PM

Title: Confused about HCE highly compensated employee and FSA
Post by: ETBen on May 31, 2016, 08:56:24 PM

I came across this in comparing benefits for job offers. One of them specifically makes mention of HCE's with regard to the dependent care FSA. I googled but am still confused.

It looks like you can't contribute as much to the dependent care FSA if you are an HCE. But it's not clear what the limit is. And what else does being an HCE affect?  I will fall into this category if I take the offer.

Title: Re: Confused about HCE highly compensated employee and FSA
Post by: oatsmagoats on June 01, 2016, 11:18:22 AM

I've only heard of being an HCE affecting your 401k contribution.  Basically, if there is not enough participation in the 401k program by non-HCEs, then the HCEs will have a portion of their contributions refunded.