Employees can contribute $50 more to their tax-free medical spending accounts in 2019 than they were able to contribute in 2018, the IRS announced Nov. 19.

The increase places the limit for flexible spending arrangements, which is a benefit offered by employers that enables employees to set aside money for healthcare costs in a tax-free account, at $2,700.

“FSAs provide employees a way to use tax-free dollars to pay medical expenses not covered by other health plans. Because eligible employees need to decide how much to contribute through payroll deductions before the plan year begins, many employers are offering their employees the option to sign up for an FSA this fall for participation that begins in 2019,” the IRS news release on the increase said.

“Throughout the year, employees can then use funds to pay qualified medical expenses not covered by their health plan, including co-pays, deductibles and a variety of medical products and services ranging from dental and vision care to eyeglasses and hearing aids. Interested employees should check with their employer for details on eligible expenses and claim procedures.”

Though the FSA model is generally use-it-or-lose-it, a special rule enables employers to offer a carryover to their employees of up to $500 that must be used within two months of the next calendar year.

Federal employees can update their FSA contributions at the FSAFEDS site.