The IRS has announced the 2019 cost-of-living adjustments for various welfare benefit plan dollar limits.  The 2019 limits are as follows:
Limit 2018 2019
Health FSA Contribution Limits
Section 125(i) limit on employee contributions to health FSAs $2,650 $2,700
Transportation Fringe Benefits
Section 132(f)(2)(A) monthly limit for transportation fringe benefits $260 $265
Section 132(f)(2)(B) monthly limit for qualified parking fringe benefits $260 $265
Adoption Assistance Exclusion/Adoption Credit
Section 137(a)(2) exclusion for adoption of a child with special needs $13,840 $14,080
Section 137(b)(1) maximum credit for qualified adoption expenses for other adoptions $13,840 $14,080
Both the exclusion and credit limits will begin to be phased out for individuals with modified adjusted gross income greater than $211,160 and will be entirely phased out for individuals with modified adjusted gross income of $251,160 or more.  These income levels are $3,580 higher than for 2018.


2019 HEALTH SAVINGS ACCOUNT AND AFFORDABLE CARE ACT (ACA) LIMITS

Earlier this year, the IRS also announced the 2019 limitations for Health Savings Accounts and the ACA affordability percentage.  The Department of Health and Human Services also previously announced the 2019 overall out-of-pocket maximum applicable to all non-grandfathered group health plans under the ACA.  The limits for 2019 are as follows:


HSA Contribution Limits

Single Coverage Family Coverage Age 55+ Catch-Up
$3,500 $7,000 $1,000


High Deductible Health Plan (HDHP) Limits

Single Coverage Family Coverage
HDHP Minimum Deductible $1,350 $2,700
HDHP Out-of-Pocket Maximum $6,750 $13,500

ACA Out-of-Pocket Maximum

Single Coverage Family Coverage
ACA Out-of-Pocket Maximum $7,900 $15,800*

*
The Single Coverage Maximum applies to each individual enrolled in Family Coverage. Once an individual enrolled in Family Coverage incurs $7,900 in out-of-pocket expenses, the plan must pay 100% of the cost of covered in-network services for that individual.
ACA Affordability 2018 2019
Section 36B(c)(2)(C)(i)(II) affordability percentage 9.56% 9.86%

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.