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Compliance Update - IRS Announces 2019 FSA Limits

IRS Announces 2019 FSA Limits  

The Internal Revenue Service recently issued Revenue Ruling 2018-57 announcing the cost-of-living adjustments for calendar year 2019.  This ruling includes an increase in the dollar limitation under §125(i) on voluntary employee salary reductions for contributions to health Flexible Spending Accounts (FSA) from $2,650 to $2,700.
 

Health Flexible Spending Account Limits  by Tax Year

2019 2018 2017 2016 2015
$2700 $2650 $2600 $2550 $2500

Important Reminder: All Plan changes must be approved by the Plan Sponsor by way of a Plan amendment, and as such, MedCost does not automatically increase the limit for your plan members when an increase is announced by the IRS. If you wish to allow your plan members to increase their annual elections up to the 2019 IRS maximum limit, contact your MedCost Account Manager. Upon your request and amendment to your Plan, MedCost will update your Plan to implement the contribution election increase for your members. 

For guidance on FSAs, please review the IRS Frequently Asked Questions page.