For individuals and businesses who are in the midst of enrollment season, the IRS has just announced an increase for 2019 FSA contribution limits. The announcement (Revenue Procedure 2018-57), released November 15, 2018, also includes increases for transportation and parking benefits. Generally the IRS announces Flexible Spending Account (FSA) annual limits in October.
2019 FSA Contribution Limits
2019 FSA contribution limits will increase by $50.00, going from $2,650 to $2,700. The increased contribution limit affects health FSAs and limited purpose FSAs.
Health FSAs may be used for a wide range of out-of-pocket healthcare expenses, including co-pays, deductibles, most dental and vision services, prescriptions, and more. Learn more about eligible FSA expenses.
Limited Purpose FSAs are coupled with a Health Savings Account and may be used for vision and dental expenses only.
Dependent Care FSA, or Dependent Care Assistance Plans, will stay at the $5,000 annual limit.
2019 FSA Contribution Limits Table
|2019 Annual Limit||2018 Annual Limit|
|Limited Purpose FSA||$2,700||$2,650|
|Dependent Care FSA||$5,000 (no change)||$5,000|
2019 Transit and Parking Contribution Limits
In addition to the FSA limit increase, the IRS announced an increase of $5.00 per month for qualified transportation fringe benefits and parking, raising the monthly limit from $260.00 to $265.00.
Bicycle commuter benefit limits remain the same at $20.00 per month.
2019 Commuter and Parking Benefits
|2019 Monthly Limits||2018 Monthly Limits|
|Bicycle||$20.00 (no change)||$20.00|
Health Savings Account (HSA) contribution limits were announced in May 2018. HSA contribution limits for both single and family coverage increased, as did the out-of-pocket maximums. Annual deductibles for qualified high deductible health plans remained the same.
2019 HSA Contribution Limits, Out-of-Pocket Maximums and Annual Deductibles
|Self-only coverage||HSA contribution limit||$3,500||$3,450|
|Out-of-pocket expense limits (maximum)||$6,750||$6,650|
|Annual deductible (minimum)||$1,350 (no change)||$1,350|
|Family coverage||HSA contribution limit||$7,000||$6,900|
|Out-of-pocket expense limits (maximum)||$13,500||$13,300|
|Annual deductible (minimum)||$2,700 (no change)||$2,700|