IRS increases FSA spending limit for 2019
- By FederalSoup Staff
- Nov 23, 2018
The Internal Revenue Service has announced that employees can contribute more to their tax-free medical spending accounts in 2019.
Next year, employees can contribute up to $2,700 to their health flexible spending arrangement, which allows for use of tax-free dollars to pay for medical expenses not covered by health plans. That’s $50 more than 2018.
“Throughout the year, employees can then use funds to pay qualified medical expenses not covered by their health plan, including co-pays, deductibles and a variety of medical products and services ranging from dental and vision care to eyeglasses and hearing aids,” IRS reports in a recent press release.
“Because eligible employees need to decide how much to contribute through payroll deductions before the plan year begins, many employers are offering their employees the option to sign up for an FSA this fall for participation that begins in 2019,” according to the release.
The agency also reminded employees of a special rule that enables employers to offer a carryover limit of up to $500 that must be used within two months of the next calendar year.