It’s official. The IRS has just announced that for 2019, individuals can contribute $2,700 to their FSA. That is an increase from the 2018 limit of $2,650. The FSA increase also applies to limited-purpose FSAs (LPFSA) that is limited to vision and dental services, which can be used in cooperation with a health savings account (HSA).
An FSA empowers employees to pay for qualified medical expenses with pre-tax funds. FSAs are popular accounts because of the tax benefits they provide to employees and to their employers.