IRS Announces Increases to Health Care FSA Limit and Qualified Transportation Expense Account Monthly Limitations for 2019
November 15, 2018 - Today the Internal Revenue Service issued Revenue Procedure 2018-57. This ruling increased the Health Care FSA limit to $2,700, an increase of $50 over the 2018 limit of $2,650, for plan years beginning on or after January 1, 2019. The monthly limit on the value of the qualified transportation benefits exclusion for qualified parking provided by an employer to its employees for 2019 increased to $265, from the $260 limit in 2018. The monthly limit for transportation in a commuter highway vehicle and transit pass provided by an employer to its employees also increased to $265 for 2019, an increase of $5 from the 2018 limit of $260.
What you need to know:
- For Flores Health Care FSA clients currently allowing the 2018 IRS maximum of $2,650, Flores will automatically adjust your Health Care FSA to allow for enrollment up to the IRS maximum for 2019 of $2,700. You may communicate new levels to employees. Flores plan documents will be updated automatically to reflect the change.
- If an employer has elected the $500 Health Care FSA rollover option, rollover amounts will not apply to the $2,700 limit (i.e. employees will rollover amounts from a previous plan year may elect to contribute up to $2,700 in additional pre-tax payroll contributions for 2019).
- Monthly QTE limits for parking and for transit will rise by $5 from $260 to $265 for tax year 2019.
Please contact your Flores business development partner at 800.532.3327 with questions regarding the increase.
About Flores
Flores is a leading national administrator of tax-advantaged reimbursement plans including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs) and Commuter Benefit Accounts (CBAs). In addition to these account-based benefit options, they also handle COBRA and other direct bill services to meet the compliance needs of the employers they serve. In 2018, Flores introduced life.balanced. Reimbursement Accounts (LBA), an affordable post-tax lifestyle reimbursement account for the culture-driven employer. Based in Charlotte, NC, Flores has emerged as the leader in the CDHP market through a service model founded upon innovative technology, dedicated professionals, and an uncompromising commitment to superior service. For more information, visit the Flores website and follow them on LinkedIn.
- Cindy Bistany
- Director of Business Development and Strategic Alliances
- (828) 693-3595
- cindy@flores247.com
- Clay Peddycord, GBA, CFC
- Director of Business Development and Strategic Alliances
- (800) 532-3327
- clay.peddycord@flores247.com
- Aaron Hunt, MBA, CDHC, HSAe, Certified COBRA Administrator
- Director of Business Development and Strategic Alliances
- (800) 532-3327
- aaron.hunt@flores247.com