IRS Announces Employee Benefit Plan Limits for 2019

The following is a brief overview. Click here to view the full limit increases.

Overview

Many employee benefits are subject to annual dollar limits that are periodically increased for inflation. The Internal Revenue Service (IRS) recently announced cost-of-living adjustments to the annual dollar limits for various welfare and retirement plan limits for 2019. Although some of the limits will remain the same, many of the limits will increase for 2019.

The annual limits for the following commonly offered employee benefits will increase for 2019:

  • • High deductible health plans (HDHPs) and health savings accounts (HSAs);
  • • Health flexible spending accounts (FSAs);
  • • Transportation fringe benefit plans; and
  • • 401(k) plans.

Action Steps

Employers should update their benefit plan designs for the new limits and make sure that their plan administration will be consistent with the new limits in 2019. Employers may also want to communicate the new benefit plan limits to employees.

Highlights

  • • The IRS recently announced cost-of-living adjustments to the annual dollar limits for employee benefit plans.
  • • Many of these limits will increase for 2019.
  • • In 2019, employees may contribute more money to their HSAs, health FSAs and 401(k) accounts.

Resources

Please reach out to us if you have any questions.

This compliance update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.