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2019 inflation-adjusted limits for FSA, HSA, QSE-HRA – IRS
The Internal Revenue Service has released 2019 annual inflation-adjusted limits for tax-favored employee benefits, including: Health Flexible Spending Arrangements (FSAs), Transit & Parking plans, and Qualified Small Employer Health Reimbursement Arrangements (QSE-HRAs).
2019 Inflation-adjusted limits
Most allowances are eligible for annual cost-of-living adjustments (COLA). The sole exception is the catch-up allowance for HSAs, which remains at $1,000 from year-to-year.
Most 2019 inflation-adjusted benefit limits increase from 2018 amounts with the exception of the Dependent Care FSA and the HDHP minimum deductible for HSAs).
Cafeteria Plans
A Section 125 Cafeteria Plan begins with a basic Premium-Only Plan to pre-tax premiums and builds upon that with optional Flexible Spending Arrangements (Health, Limited, and Dependent Care FSAs) to cover out-of-pocket medical and dependent care expenses with pre-tax dollars and Health Savings Accounts (HSAs) that cover out-of-pocket medical costs plus build retirement savings with pre-tax salary deductions.
Here are the 2019 inflation-adjusted benefit limits for Cafeteria Plans, with historical information for comparison:
Health Flexible Spending Arrangement (FSA)
|
2019 |
2018 |
2017 |
2016 |
| Contribution allowed (annual limit) |
2,700 |
$2,650 |
$2,600 |
$2,500 |
| Dependent Care Assistance Plan (DCAP) |
2019 |
2018 |
2017 |
2016 |
| Married filing separately (per spouse) |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
| Married filing jointly |
$5,000 |
$5,000 |
$5,000 |
$5,000 |
| Single or Head of Household |
$5,000 |
$5,000 |
$5,000 |
$5,000 |
Health Savings Account (HSA)
|
|
|
|
|
| HDHP Minimum Deductible |
2019 |
2018 |
2017 |
2016 |
| Individual coverage |
$1,350 |
$1,350 |
$1,300 |
$1,300 |
| Family coverage |
$2,700 |
$2,700 |
$2,600 |
$2,600 |
| HDHP Out-of-Pocket Maximum |
2019 |
2018 |
2017 |
2016 |
| Individual coverage |
$6,750 |
$6,650 |
$6,550 |
$6,550 |
| Family coverage |
$13,500 |
$13,300 |
$13,100 |
$13,100 |
| HSA Maximum Annual Contribution |
2019 |
2018 |
2017 |
2016 |
| Individual coverage |
$3,500 |
$3,450 |
$3,400 |
$3,350 |
| Family coverage |
$7,000 |
$6,900 |
$6,750 |
$6,750 |
| Catch-up allowance (age 55+) |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
QSE-HRA
The Qualified Small Employer Health Reimbursement Arrangement allows employers with fewer than 50 employees to provide assistance for the purchase of individual health coverage and out-of-pocket medical expenses. The QSE-HRA is entirely employer funded and requires employees to purchase a health plan providing minimal essential coverage before reimbursements can be made from the plan.
Qualified Small Employer HRA (QSE-HRA)
|
2019 |
2018 |
2017 |
2016 |
| Individual Coverage |
$5,150 |
$5,050 |
$4,950 |
n/a |
| Family Coverage |
$10,450 |
$10,250 |
$10,000 |
n/a |
Section 132 Commuter Plans
A Transit & Parking plan allows employees to set aside funds via pre-tax salary deductions to pay for transit passes, vanpooling, and parking necessary for them to work.
Transit & Parking Plan
|
2019 |
2018 |
2017 |
2016 |
| Parking expense (per month) |
$265 |
$260 |
$255 |
$255 |
| Transit expense (per month) |
$265 |
$260 |
$255 |
$255 |
Section 137 Adoption Plans
Employers help adoptive parents offset the expense of adopting a child with a Section 137 Adoption Assistance Plan.
Adoption Assistance Plan
|
2019 |
2018 |
2017 |
2016 |
| Adoption expenses (annual limit) |
$14,080 |
$13,840 |
$13,570 |
$13,460 |
| Tax credit phase-out begins (MAGI) |
$211,160 |
$207,580 |
$203,540 |
$201,920 |
| Tax credit ends (MAGI) |
$251,160 |
$247,580 |
$243,540 |
$241,920 |