Buck Bond Group
IRS Announces Some 2019 Benefit Plan Limits

IRS Announces Some 2019 Benefit Plan Limits

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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.