Increase in Health FSA Contribution Limit Just Announced

McDermott Will & Emery
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McDermott Will & Emery

On November 15, 2018, the Internal Revenue Service (IRS) increased the annual maximum salary reduction limit for contributions to a health flexible spending account to $2,700. The 2019 contribution limit was published in Rev. Proc. 2018-57. The 2018 contribution limit was $2,650, resulting in an increase of $50 for 2019. An employer may use the increased limit for both health flexible spending accounts and limited purposed health flexible spending accounts that it maintains for its employees.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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