First, if you have a pre-tax account in 2017, remember that your 2017 elections expire. You must make a new election each year during Open Enrollment if you wish to continue your account. When considering a 2018 election for a Medical/Dental Expense Account (MDEA), note that up to $500 of unused funds will carry over from 2017 into 2018 as long as you contribute your full 2017 election. For more information on carry-over, visit the 121 Benefits’ FAQ.

Second, the Internal Revenue Service recently announced increases to the maximum allowed elections for MDEA and transit expense accounts. The MDEA maximum will increase from $2600 to $2650 for the 2018 plan year. For the transit expense accounts, both Parking (PKEA) and Mass Transit (BVEA) will be increasing from $255 to $260 for the 2018 plan year.

Find more information on pre-tax accounts on the 121 Benefits website.