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:
|Flexible Spending Accounts (FSAs)||$2,650||$2,700|
|Limited Purpose FSAs||$2,650||$2,700|
|Dependent Care FSAs||$5,000||$5,000|
Earlier this year, the IRS also released limits for health savings accounts (HSAs). ** We’ve listed those amounts here:
|Health Savings Account (HSA) contribution limit||Individual: $3,450
|HSA catch-up contributions (age 55 and older)||$1,000||$1,000|
|HSA (high deductible health plan) minimum deductible||Individual: $1,350
|HSA out-of-pocket maximum amount||Individual: $6,650
* Details for spending accounts and commuter benefits from IRS Revenue Procedure 2018-57.
** Details for health savings accounts from IRS Revenue Procedure 2018-30.