FSA Carryover Increase

Under IRS Notice 2020-33, the Health FSA carryover limit increases from $500 to $550 for plan years starting in 2020.  The increase will be indexed in future years (20% of the annual maximum, rounded to the next $10 increment).  

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Employers will need to amend their FSA plan by the last day of the plan year starting in 2021.  For example, if your plan renews on January 1, 2021, you would have to amend your plan by December 31, 2021.