Flexible Spending Accounts Program Increasing Health Care Accounts Maximum From $2,700 To $2,750

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).