IRS Revenue Procedure 2018-57 announces the cost of living adjustments for 2019.
Check out the benefit limits for 2019 so you and your entire team are prepared come Jan. 1:
- FSAs. The dollar limitation for voluntary employee salary reductions for contributions to health FSAs will be $2,700 (up $50 over 2018).
- Qualified transportation limits. The monthly limit that may be excluded from an employee’s income for qualified parking benefits will increase to $265 (up $5 from 2018). The combined monthly limit for transit passes and van-pooling expenses will also be $265 (up $5 from 2018).
- Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs). The maximum amount of payments and reimbursements under a QSEHRA cannot exceed $5,150 for individual coverage and $10,450 for family coverage (a $100 and $200 increase from 2018, respectively).
- Adoption assistance exclusion and adoption credit. The maximum amount that may be excluded from an employee’s gross income under an employer-provided adoption assistance program rises to $14,080 (up $270 from 2018). In addition to this increase, the maximum adoption credit allowed to an individual for the adoption of a child will also be $13,840 (a $270 increase from 2018). Both the exclusion and the credit will begin to be phased out for individuals with modified adjusted gross incomes greater than $211,160 and will be entirely phased out for individuals with modified adjusted gross incomes of $251,160 or more.
- Small business health care tax credit. The average annual wage level at which the tax credit begins to phase out for eligible small employers will rise to $27,100 (up $500 from 2018). The maximum average annual wages to qualify for the credit as an “eligible small employer” will be $54,200 (an increase of $1,000 from 2018).
- Archer MSAs. For Archer MSA-compatible high-deductible health coverage, the annual deductible for self-only coverage must be between $2,350 ($50 over 2018) and $3,500 (up $50 from 2017), with an out-of-pocket maximum of $4,650 ($50 increase from this year). For family coverage, the annual deductible must be between $4,650 (up $50 from 2018) and $7,000 (up $150 from 2018), with an out-of-pocket maximum of $8,550 ($150 increase from 2018).
And of course you can always tap our year-end checklist to make sure your team is staying on track.