2019 BENEFIT LIMITS YOU NEED TO KNOW

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The IRS has changed the annual contribution limits on many tax-free benefit accounts available for enrollment for 2019.  Make sure you know the contribution limits for your accounts this coming year and that you take full advantage of the benefit accounts offered by your employer in order to save on your taxes. 

Below is a table of the contribution limits on benefit accounts for 2019:

 

 

Account Limits	2019	2018
Health Care Flexible Spending Account (FSA)	$2,700/year	$2,650/year
Dependent Care Flexible Spending Account (FSA)	$5,000/year	$5,000/year
Health Savings Accounts (HSA)
High Deductible Health Plan Annual Deductible Minimums	Self-only: $1,350/year Family: $2,700/year	Self-only: $1,350/year Family: $2,700/year
Annual Out-of-Pocket Maximums	Self-only: $6,750/year Family:$13,500/year	Self-only: $6,650/year Family: $13,300/year
Maximum Contribution	Self-only: $3,500/year Family: $7,000/year	Self-only: $3,450/year Family: $6,850/year
Transportation Fringe Benefits
Parking	$265/month	$260/month
Mass Transit	$265/month	$260/month
Qualified Small Health Reimbursement Arrangements (QSEHRAs) limits
Individual Coverage	$5,150/year	$5,050/year
Family Coverage	$10,450/year	$10,250/year

 

FSA  

A Flexible Spending Account (FSA) is a tax-free way to set money aside for specific medical expenses, such as copayments, coinsurance, deductibles, and prescriptions drugs for yourself, your spouse or dependents.  Because this is a tax-free way to save money, you will also save the amount of money you would have paid in taxes if the money were not in an FSA. Participants can contribute up to $2,700 tax-free in 2019. 

 

Dependent Care FSA 

 A Dependent Care FSA will allow you to set aside and use pre-tax dollars to pay for eligible dependent expenses for children up to age 13 as well as for a spouse or relative that lives in your home and is mentally or physically incapable of self-care.  These accounts cover such costs as preschool, summer camp, before and after school care and day care for both children and adults.  Contributions can be made to these accounts up to $5,000 in 2019.

 

HSA

Those with a high deductible health plan (HDHP) can use a health savings account to save money tax-free for future medical expenses.  You must be enrolled in an HDHP to have an HSA. The annual limitation on deductions for an HSA account in 2019 $3,500 for individuals and $7,000 for families.  Deductibles for HDHPs cannot be below $1350 for individual coverage or $2,700 for family coverage.  In addition, out-of-pocket expenses cannot exceed $6,750 for individual coverage or $13,500 for family coverage in the coming year. 

 

Transportation Fringe Benefit Accounts

These benefit accounts are designed to reduce commuter costs in traveling to work.   Because the money in these accounts is pre-taxed, participants can save up to 30% on things like parking, transit, and highway commuter vehicles (such as a vanpool).  For 2019, the cap for monthly commuter benefits for parking, transit and vanpooling has increased to $265.  This is a $5 increase from the previous year.

 

QSEHRA Accounts

 A Qualified Small Employer Health Reimbursement Arrangement (also known as a QSEHRA or small business HRA) is an alternative to traditional group health insurance.  It allows employers to provide a company-funded, tax-free monthly allowance for its employees to use toward health-related expenses, such as health insurance premiums, co-pays, and prescriptions.  These accounts allow an employee to request reimbursements from their employer for their health expenses when they provide appropriate documentation (receipts, explanation of benefits, etc.).  For 2019, an employer's annual contribution limitations for QSEHRA accounts are $5,150 for individual coverage and $10,450 for family coverage.

 

RedQuote Can Help

Redquote is a team of passionate and experienced healthcare advisors ready to help you and your team navigate your benefit choices.  We’ll help you analyze benefit accounts to make sure you are taking full advantage of your options and saving the most money.  Don’t hesitate to call us today!

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Published Dec 12, 2018.