Compliance FYI: IRS Announces New Health FSA Limits for 2019

Compliance, Employee Benefits

On November 15th, the Internal Revenue Service (IRS) released Revenue Procedure 2018-57, which officially raises the maximum Health Flexible Spending Account (FSA) contribution limit to $2,700 per calendar year beginning in 2019.

This means that starting on January 1, 2019, the contribution limits for FSAs are:

Dependent Care$5,000$5,000
Transportation (Parking)$260/month$265/month
Transportation (Transit)$260/month$265/month

Key Takeaway

The increase goes into effect on January 1, but it is important to remember that organizations are not required to raise the contribution limit.  Organizations with January 1 renewal dates, who want to raise the limit, should contact your M3 Account Team or the administrator of their Flexible Spending Account plan to determine how to move forward.  There may still be time to increase the maximum contribution to your plan to adjust for the new legal threshold.

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