IRS 2019 Limits for Health FSAs, Parking & Transit Accounts
The new annual limit for health FSAs, including general-purpose and limited-purpose health FSAs, is $2
for plan years starting on or after January 1, 201
700 limit is prorated for short plan years (plan years that are shorter than 12 months), and any carryover amount from participants' previous plan years may be added to the limit. The $500 carryover does not count against or affect the $2,700 salary reduction limit.
Example: Participants may elect $2,700 for the 2019 plan year and carry over a maximum of $500 from the previous plan year, making their total account value $3,200 for the 2019 plan year.
Parking and Transit Accounts have increased from $260 to $265 each for calendar year 2019.
Because the increases are approved late in the fall after many Open Enrollments are closed, employers have the option of waiting until next year to increase their limits. You may need to amend your FSA plan to allow the new higher contribution amount. Please contact your Plan administrator if you wish to increase your FSA limit or Parking/Transit limits.