determined by the Internal Revenue Service. The annual limit was $2,500 for the first plan year beginning after December 31, 2012. The Internal Revenue Service will index subsequent plan years' limits for cost-of-living adjustments. For 2018, this adjustment increases the contribution limit to $2650. Employers have the option to limit their employees' annual elections further. This change starts in plan years that begin after December 31, 2012. The limit is applied to each employee, without regard to whether the employee has a spouse or children. Non-elective contributions made by the employer that are not deducted from the employee's wages are not counted against the limit. An employee employed by multiple unrelated employers may elect an amount up to the limit under each employer's plan. The limit does not apply to health savings accounts, health reimbursement arrangements, or the employee's share of the cost of employer-sponsored health insurance coverage. Some employers choose to issue a debit card to their employees who participate in the FSA. Participants may use the debit card to pay for their FSA-eligible expenses at the point of sale. Pharmacies and grocery stores who choose to accept the debit card as payment must disallow transactions at point of sale if the participant attempts to pay for items that are not eligible under an FSA. In addition, employers still must require employees to provide itemized receipts for all expenses charged to the debit card. The IRS allows employers to waive this requirement when an individual uses the debit card at a pharmacy or grocery store that complies with the above procedure. The IRS also allows employers to waive this requirement when the amount charged to the debit card is a multiple of a co-pay of the employee's group health insurance plan. In most cases, the FSA administering firm will prefer actual insurance Explanations of Benefits (EOBs) clearly representing the patient portion of any medical expense, over other, more vague documentation. This requirement is becoming less cumbersome as more insurances allow patients to search for past EOBs on their websites. Dependent care FSA FSAs can also be established to pay for certain expenses to care for dependents while the legal guardian is at work. This includes child care for children under the age of 13 and day care for an individual of any age who is incapable of self-care, lives with the taxpayer for more than one-half of the tax