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NJ S3352
Bill
Status
2/5/2026
Primary Sponsor
Shirley Turner
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AI Summary
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Aligns New Jersey public employee flexible spending account (FSA) contribution limits with federal Internal Revenue Code limits, requiring annual inflation adjustments as provided under 26 U.S.C. §125(i) for medical FSAs.
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Medical FSA contributions for public employees would follow the federal limit of $3,300 for taxable year 2025, with automatic annual adjustments for inflation thereafter.
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Dependent care FSA contributions would be capped at the federal limit of $7,500 annually ($3,750 for married individuals filing separately) under 26 U.S.C. §129(a).
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Applies to employees of the State of New Jersey, local governments, independent state authorities, boards of education, and school districts.
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FSA contributions continue to be treated as regular compensation for pension contribution calculations and retirement allowance amounts while remaining tax-exempt under federal income tax law.
Legislative Description
Requires same limitation on public employee contributions to medical and dependent care flexible spending accounts as provided by federal law.
State Government, Wagering, Tourism & Historic Preservation
Last Action
Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee
2/5/2026