The Internal Revenue Service (IRS) recently announced an increase in the contribution limit for the 2024 Medical Spending Accounts (MSAs) and limited-use MSAs from $3,050 to $3,200.  Because this decision was made after the end of open enrollment, employees who are eligible to contribute to an MSA may make a new election for 2024.  Employees who elected to contribute to an MSA during open enrollment may also increase their contribution should they choose, but employees cannot decrease the contribution they elected during open enrollment.

The IRS also increased the carryover amount of unused funds for 2024 with a maximum carryover amount increased from $610 to $640.  Participants may carry over up to $640 in unused funds from their account into 2025, but they will forfeit funds over $640 that remain in their account after the March 31, 2025, reimbursement deadline.

To enroll or increase their contribution, employees must complete a paper Notice of Election (NOE), sign it and return it to their campus Benefits Office by December 1, 2023.  For the Columbia campus, please mail the completed NOE to benefits@mailbox.sc.edu and do not email full social security numbers or sensitive data in unprotected attachments.