You can contribute and carry over more in your TexFlex flexible spending accounts in the new plan year
TexFlexSM flexible spending account (FSA) contribution and carryover limits increasing in Plan Year 2024
In Plan Year 2024, if you have a health care or limited-purpose FSA, you will be able to set aside up to $3,050 for the year through monthly, tax-free deductions from your paycheck. (The maximum contribution for dependent care FSAs remains the same, at $5,000 for the year.)
The carryover amount for health care and limited-purpose FSAs is increasing. If you have a health care or limited-purpose FSA in Plan Year 2024, you can carry over up to $610 in unused funds from Plan Year 2024, ending Aug. 31, 2024, to Plan Year 2025, starting Sept. 1, 2024. (The dependent care FSA doesn’t have a carryover, but has a two-and-a-half-month grace period to spend unused funds after the plan year ends.)
The IRS establishes the maximum annual contribution and carryover limits for flexible spending accounts.
To take advantage of the new annual limits for PY24, you can increase your contribution during Summer Enrollment. If you don’t take action, ERS will automatically re-enroll you at your PY24 election contribution. If you’re currently making the maximum contribution, it will not increase to the new maximum automatically; you must elect the maximum contribution during Summer Enrollment.