On Thursday, November 15, 2018, the IRS released a statement that officially increased the annual contribution limit for Healthcare Flexible Spending Accounts (FSA) – both Medical FSAs and Limited Purpose FSAs – and the monthly contribution limits for Qualified Parking and Transportation Accounts for any plan years beginning in 2019. There was no change to the Dependent Care Flexible Spending Account.
Beginning on January 1, 2019, the maximum employee election amounts for FSAs are as follows:
- Annual Medical and Limited Purpose Flexible Spending Account (FSA) contribution limits will increase by $50 from the current amount of $2,650 to $2,700
- Monthly limit for Parking and Transit will increase $5 from the current amount of $260 to $265
This comes as a follow-up to the announcement of increased limits for Health Savings Account (HSA) contributions for 2019 announced earlier this year. For those with Single coverage, the HSA contribution limit increases by $50, while accounts tied to Family coverage went up by $100. The catch-up contribution for HSA account holders age 55 or older will remain the same at $1,000. Here is a summary of the HSA contribution limit changes taking effect in 2019:
- HSA limits increase to $3,500 for single coverage and $7,000 for family coverage
No change to the catch-up for over 55+.
If you wish to increase your FSA contribution to this new limit given its announcement after our open enrollment commenced, you may do so up until December 31, 2018. Contact your InTANDEM HR Account Manager if you wish to make a change to your previously submitted Flexible Spending Account election.