November 15, 2018

The IRS released Revenue Procedure 2018-57, which provides the 2019 cost-of-living increases for certain plans. Below please find the updated contribution amounts effective January 1, 2019.

Flexible Spending Accounts

Health FSA 

For 2019, the dollar limitation on employee salary reduction contributions to a Health Flexible Spending Account will increase by $50 to $2,700 per plan year. 

Adoption Assistance FSA

The maximum amount that may be excluded from an employee's gross income under an employer-provided adoption assistance program for the adoption of a child will increase to $14,080 for 2019.

Qualified Small Employer Health Reimbursement Arrangement

To qualify as a qualified small employer Health Reimbursement Arrangement, the total amount of payments and reimbursements cannot exceed $5,150 for single coverage and $10,450 for family coverage.

Commuter Plan - Parking & Transit Account

The maximum monthly contribution amount for both the Parking and Transit Accounts will increase by $5 to $265 for 2019.

Retirement Plans

For 401(k), 403(b) and most 457 plans, the 2019 elective deferral limit will increase to $19,000. The catch-up contribution limit for employees ages 50 and over who participate in 401(k), 403(b), and most 457 plans will continue at $6,000. 

For IRAs, the contribution limit goes up by $500 from $5,500 to $6,000. The IRA catch-up contribution limit remains unchanged at $1,000.

The limitation used in the definition of highly compensated employees for 2019 will increase from $120,000 to $125,000.