The IRS has announced a $50 increase to the annual employee pre-tax maximum contribution allowed under both the Health Care Flexible Spending Account (HCFSA) and Limited Expense Health Care Flexible Spending Account (LEXFSA). The contribution limit will increase from $2,700 to $2,750. This change does not affect the annual maximum for the Dependent Care Flexible Spending Account (DCFSA), which remains at $5,000. The increase for the HCFSA and LEXFSA is effective for accounts beginning on or after January 1, 2020.
You can choose the new higher limit when enrolling in a HCFSA or LEXFSA during this Federal Benefits Open Season, which runs through December 9, 2019. To enroll or re-enroll in an FSA, go to the FSAFEDS website or call 1-877-372-3337 (TTY: 1-866-353-8058).