2020 Health FSA Contribution Limit Increased to $2,750

Employers offering health flexible spending arrangements (FSAs) for 2020 may allow participating employees to contribute up to $2,750 during the 2020 plan year; this is a $50 increase over 2019. FSA contributions are tax-free payroll deductions that can be used towards medical expenses not covered by other health plans.

2019 FSA plans: If employers offered the grace period option, participating employees with unspent funds have until March 15, 2020, to incur eligible expenses.

For more information on FSAs, see the Internal Revenue Service (IRS) news release.