Healthcare FSA, Parking, And Transportation Contribution Limits for 2019
The IRS has released the 2019 pre-tax dollar limits on employee contributions to employer-sponsored healthcare Flexible Spending Accounts, Parking Fringe Benefit Accounts, and Transportation Fringe Benefit Accounts.
FOR TAX YEAR 2019:
1. The new maximum employee contribution to healthcare FSAs will increase to $2,700 annually (up from $2,650 in 2018).
2. The new maximum employee contribution to parking benefit accounts and transportation benefit accounts will increase to $265 per month (up from $260/month in 2018).
3. Annual limits for Dependent Care FSAs remain unchanged.
1. This is NOT an automatic change to your Plan. Employers may choose a lower limit. If you wish to increase your limit for the 2019 Plan Year, your Plan Document will need amended prior to the start of the 2019 Plan Year.
2. Unlike the pre-tax Healthcare FSA maximum, the limits under a Parking or Transportation Plan will include any employer contribution towards the Parking or Transportation Benefit. Therefore, any employer contribution reduces the amount an employee can elect as a pre-tax amount for his/her Parking and Transportation Benefits.