IRS Announces 2019 Increases to Flex Benefit Contribution Limits

The IRS has announced the 2019 contribution maximums for Flexible Spending Account (FSA) plans in the newly released Revenue Procedure 2018-57. Contribution limits increased for the Health FSA, Commuter Benefits and Adoption Assistance program, while limits for the Dependent Care FSA remained unchanged.

Health Flexible Spending Account

The Health FSA, which provides employees the ability to set aside money on pre-tax basis to pay for eligible medical, dental, and vision expenses will have an increase to its contribution maximum from $2,650 to $2,700 for 2019. The new contribution limit will also apply to the Limited Purpose FSA which reimburses eligible dental and vision expenses. 

Commuter Benefits

Commuter Benefits help employees pay for certain parking, mass transit and/or vanpooling expenses with pre-tax dollars. The contribution limits for this account will increase from $260 to $265 for 2019.

Adoption Assistance

The Adoption Assistance FSA helps employees pay eligible adoption expenses such as agency fees and court costs by contributing to the account with pre-tax money from their paycheck. The contribution limits for this account will increase from $13,840 to $14,080 for 2019.

 

 

 2018 and 2019 Contribution Amounts

 

 Benefit

 

 2018

 

 2019

 

 Health FSA

 

 $2,650

 

 $2,700

 

 Limited Purpose FSA

 

 $2,650

 

 $2,700

 

 Dependent Care

 

 $5,000

 

 $5,000

 

 Parking/Transportation

 

 $260 / $260

 

 $265 / $265

 

 Adoption Assistance

 

 $13,840

 

 $14,080

 

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