Volume 41 | Issue 91 | November 15, 2018
Download this FYI Alert as a printable PDF
The IRS has issued Revenue Procedure 2018-57, which contains 2019 limits for health flexible spending arrangements, qualified transportation fringe benefits, adoption assistance programs, and long-term care premiums.
Health flexible spending arrangements
The annual limit on employee salary reduction contributions to health flexible spending arrangements under Section 125(i) for plan years beginning in 2019 (compared with 2018) is:
|
2019 |
2018 |
|
| Maximum salary reduction amount |
$ 2,700 |
$ 2,650 |
Qualified transportation fringe benefits
The monthly limits under Section 132(f) for tax years beginning in 2019 (compared with 2018) are:
|
2019 |
2018 |
|
| Commuter highway vehicle and transit pass |
$ 265 |
$ 260 |
| Qualified parking | $ 265 | $ 260 |
Adoption assistance programs
For employer-provided adoption assistance programs, the maximum amount excludible from an employee’s income in 2019 (compared with 2018) for the adoption of a child (both for regular and special-needs adoptions) is shown below. The excludible amount phases out for taxpayers with modified adjusted gross income that exceeds certain levels.
|
2019 |
2018 |
|
| Excludible amount |
$ 14,080 |
$ 13,840 |
| Phase-out income thresholds | ||
| Phase-out begins |
$ 211,160 |
$ 207,580 |
| Phase-out complete |
$ 251,160 |
$ 247,580 |
Long-term care premiums
The limits under Section 213(d) for eligible long-term care premiums that qualify as medical expenses for tax years beginning in 2019 (compared with 2018) are shown below, based on attained age before the close of the taxable year.
|
2019 |
2018 |
|
| Age 40 or younger |
$ 420 |
$ 420 |
| > 40 but < 50 |
$ 790 |
$ 780 |
| > 50 but < 60 |
$ 1,580 |
$ 1,560 |
| > 60 but < 70 |
$ 4,220 |
$ 4,160 |
| > 70 |
$ 5,270 |
$ 5,200 |
Health savings accounts
The 2019 limits for contributions to health savings accounts and for high-deductible health plans were released earlier this year. (See our May 14, 2018 For Your Information.)
In closing
Our For Your Reference, a wallet-sized booklet showing retirement plan and other benefit limits and various key Social Security and Medicare figures, will be available shortly from your consultant.