Today, the Internal Revenue Service announced various tax code inflation adjustments for 2019. Employers should note the following new limits for their health plans in the 2019 tax year.
- Transportation Benefit. The monthly limit for qualified parking and the qualified transportation fringe benefit will be $265, up from $260 in 2018.
- Health FSA. The dollar limit for employee salary reduction contributions to a health flexible spending account plan will be $2,700, up from $2,650 in 2018. This new limit will apply to health FSA plan years beginning on or after 1/1/2019.
- ACA Penalty. The dollar amount used to determine the penalty for not maintaining minimum essential health coverage is $0, reduced from $695 in 2018.
- Medical Savings Accounts. Self-only coverage- The term "high deductible health plan" will mean, for self-only coverage, a health plan that has an annual deductible that is not less than $2,350 and not more than $3,500, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $4,650. Family coverage- The term "high deductible health plan" will mean, for family coverage, a health plan that has an annual deductible that is not less than $4,650 and not more than $7,000, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $8,550.
A copy of the IRS Revenue Procedure with all the new limits may be accessed by clicking here.
