The IRS announced annual adjustments to Health Care Flexible Spending Accounts and Parking and Transit Accounts.

Benefit Plan 2018 Limit 2019 Limit
Health FSA $2,650/year $2,700/year
Parking and Transit Account $260/month $265/month

 

Employers are not required to increase their Health FSA to reflect the new limit.  It may not be administratively feasible for groups who have completed or are in the midst of annual enrollment and, therefore, can be applied in 2020.

For additional information, see the IRS Announcement or contact VCG’s Vantage.