IRS sets 2019 contribution limits

IRS sets HSA, FSA and 401(k) Limits 

The Internal Revenue Service issued Rev. Procedure 2018-57 announcing the 2019 Health Savings Account (HSA) contribution limitations and out-of-pocket expenses associated with high-deductible health plans (HDHPs). A family plan can be increased to $7,000, up $100 from last year.

Next year, employees can put an extra $50 into their health care flexible spending accounts (health FSAs.) For 2019, employees can contribute $2,700 to their health FSAs, up from the 2018 limit of $2,650. 

The increase in the cost-of-living index, which increased by 2.8 percent for the 12 months ending in September, met the statutory thresholds that trigger rate adjustments for these benefits. The contribution limit for 401(k), 403(b), and Thrift Savings Plan participants was also increased to $19,000 from $18,500 last year.

Flexible Spending Account (FSA) Limits 2019 2018
Individual $2,700 $2,650
Health Savings Account (HSA) Limits 2019 2018
Self-only contribution (employee + employer) $3,500 $3,450
Family contribution (employee + employer) $7,000 $6,900
HSA catch-up contribution (55 or older) $1,000 $1,000
Self-only HDHP minimum deductible $1,350 $1,300
Family HDHP minimum deductible $2,700 $2,700
Self-only HDHP maximum out-of-pocket $6,750 $6,650
Family HDHP maximum out-of-pocket $13,500 $13,300
Pension Plan and 401(k) Limits 2019 2018
401(k)/403(b) deferral $19,000 $18,500
415(b) annual benefit under a defined benefit $56,000 $55,000
401(k) catch-up contribution (50 or older) $6,000 $6,000
414(q) highly-compensated employee  $125,000 $120,000

For more information, contact Broker Source at 913.333.3381.

News Type: 
Compliance Corner