IRS releases 2019 flexible spending account limits

On November 15, the Internal Revenue Service (IRS) released the 2019 limits* for health care flexible spending accounts (FSAs), limited purpose FSAs, dependent care FSAs and commuter benefits (for transportation expenses).  This IRS update provides the maximum amounts allowed, but employers are not required to offer the maximum benefit limit to their employees.  We expect that due to the late timing of the release, many employers will not offer the increase until their next renewal.

This chart shows the spending account changes for 2019:

Benefit 2018 2019
Flexible Spending Accounts (FSAs) $2,650 $2,700
Limited Purpose FSAs $2,650 $2,700
Dependent Care FSAs $5,000 $5,000
Commuter benefits $260 $265

Earlier this year, the IRS also released limits for health savings accounts (HSAs). ** We’ve listed those amounts here:

Limit 2018 2019
Health Savings Account (HSA) contribution limit Individual: $3,450
Family: $6,900
Individual: $3,500
Family: $7,000
HSA catch-up contributions (age 55 and older) $1,000 $1,000
HSA (high deductible health plan) minimum deductible Individual: $1,350
Family: $2,700
Individual: $1,350
Family: $2,700
HSA out-of-pocket maximum amount Individual: $6,650
Family: $13,300
Individual: $6,750
Family: $13,500

* Details for spending accounts and commuter benefits from IRS Revenue Procedure 2018-57.
** Details for health savings accounts from IRS Revenue Procedure 2018-30.