The Internal Revenue Service (IRS) just released their annual inflation adjustments for more than 60 tax provisions for the year of 2019, including several benefits-related accounts.
Here’s what benefits administrators need to know for 2019.
Flexible Spending Accounts
The annual contribution limits for FSAs will increase slightly to $2,700, up $50 from the current limit of $2,650.
Qualified Small Employer Health Reimbursement Arrangement
The max annual contribution for QSEHRAs will increase slightly for both individual and family accounts:
- Individual contributions will increase to $5,150, up $100 from the current limit of $5,050
- Family contributions will increase to $10,450, up $200 from the current limit of $10,250
Health Savings Accounts
The maximum contributions for both individual and family HSAs will also increase slightly for 2019:
- Individual contribution limit will be raised to $3,500, up $50 from the current limit of $3,450
- Family contribution limit will be raised to $7,000, up $100 from the current limit of $6900
Transit and Parking
The monthly limit for transit and parking accounts will increase to $265, up $5 from the previous limit of $260.
2019 IRS Cost of Living Adjustments
What should you do?
First, be sure that your benefits administration systems are configured to reflect the latest changes.
And, be sure you are educating your workforce on any changes related to programs or perks that you might offer, like benefits savings accounts so that they can take full advantage of any increases.
For a full breakdown of the new limits please review Revenue Procedure 2018-57