Limited-time opportunity to enroll in or increase your 2024 MSA contribution

The IRS recently announced an increase in the contribution limit for Medical Spending Accounts (MSAs) and Limited-use MSAs for 2024. The limit increased from $3,050 to $3,200. Because this announcement was made after the end of open enrollment, employees who are eligible to contribute to an MSA may make a new election for 2024. If you elected to contribute to an MSA during open enrollment, you may also increase your contribution if you wish. You cannot decrease your contribution.

To enroll or increase your contribution, complete a paper Notice of Election (NOE), sign it and return it to your benefits administrator. Your benefits administrator must submit the NOE to PEBA by December 1, 2023.

The IRS also increased the carryover amount of unused funds for 2024. The maximum carryover amount increased from $610 to $640. This means you can carry over into 2025 up to $640 in unused funds from your account. You will forfeit funds over $640 left in your account after the March 31, 2025, reimbursement deadline.

If you have any questions, please contact your benefits administrator.