The Internal Revenue Service (IRS) recently released the 2019 annual contribution limits for Health Flexible Spending Accounts (FSA) which will take effect on January 1, 2019.
The annual limit on voluntary employee salary reductions for contributions to a health flexible spending account will be $2,700 in 2019, which is an increase from the prior limit of $2,650. The annual limit also applies to the limited purpose FSA, which can be used for dental and vision expenses.
When does this affect your plan?
The limit increase will apply when the employer’s FSA plan year begins. For example, if the plan year begins on June 1, the limit increase will kick in on June 1, 2019 during the open enrollment period.
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For more information on the increased Health FSA limits, review the IRS news release, IRS: Plan now to use Health Flexible Spending Arrangements in 2019.
Interested in learning more about Flexible Spending Accounts? Click here.