October 05, 2021

The IRS announced that the voluntary employee health FSA contribution limit for 2020 will be $2,750—a $50 increase over the 2019 limit. This limit applies only to employees’ (rather than employers’) contributions.

Next Steps

Plan sponsors wishing to increase health FSA contribution limits for 2020 will need to:

• Coordinate with third-party administrators,
• Amend plan documents, and
• Notify plan participants accordingly.

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Policy & Advocacy Health Accounts