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.