Limited-time opportunity to enroll in or increase your 2027 MSA contribution


The IRS recently announced an increase in the contribution limit for Medical Spending Accounts and Limited-use MSAs for 2027. The limit increased from $3,400 to $3,500. Because this announcement was made after the end of open enrollment, employees who are eligible to contribute to an MSA can make a new election for 2027.If you elected to contribute to an MSA during open enrollment, you can also increase your contribution. If you elected to contribute during open enrollment, you cannot decrease the contribution.


To enroll or increase your contribution, complete a Notice of Election, indicating the MSA or Limited-use MSA plan year total amount only, sign it and return it to your benefits administrator. Your benefits administrator must sign and mail the NOE to PEBA by December 14, 2026.


The IRS also increased the carryover amount of unused funds for 2027. The maximum carryover amount increased from $680 to $700. This means you can carry over into 2028 up to $700 in unused funds from your account. You will forfeit funds over $700 left in your account after the March 31, 2028, reimbursement deadline.


If you have questions, contact your benefits administrator.


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Not all employers and members participate in a PEBA-administered retirement plan or insurance programs. Please disregard any information not applicable to you.


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