IRS Announces New 2019 Limits for FSA and Transportation Plans
|New Health FSA Maximum|
The IRS released Revenue Procedure 2018-222 with cost-of-living adjustments for tax-related amounts indexed for inflation. As a result, the maximum amount participants may contribute to the Health Care (and Limited Purpose) Flexible Spending Accounts in 2019 was increased to $2,700 (up from $2,650 in 2018). For plans with a non-calendar year effective date, the new maximum becomes effective with the next plan year.
The maximum monthly amounts participants may contribute to the Parking and Transit (Bus/VanPool) Accounts increases to $265 for each account (up from $260 each in 2018). Most states (including Minnesota and Wisconsin) have now provided permanent parity between the parking and transit benefits so these increases apply at both the Federal and State level.