The Internal Revenue Service announced some very important number companies and employees need to know about health savings accounts, 401(k)s and flexible spending accounts. Note: All of the changes take place in January 2019.
401(k) Pre Tax Limit Increases – Pre-tax contribution limits for employees who participate in a 401(k), 403(b) and most 457 plans increases to $19,000.
401(k) Catch-up Contribution – 50 and over, the additional 401(k) catch-up contribution limit, which is set by law, will stay at $6,000 for 2019.
IRA Contributions – IRA contribution limits are being raised to $6,000
HSA contributions (Individual) – The Health Savings Account annual limit for individuals is increased to $3,500
HSA Contributions (Family) – The Health Savings Account limit for families is increased to $7,000
HSA Catch-up Contributions – 55 and older can contribute an extra $1,000 to their health savings account in 2019.
FSA – The health flexible spending account contribution limit for 2019 is $2,700
These are just some of the numbers which employers and employees should know for 2019. There were reportedly no changes in the minimum deductible for a qualifying high-deductible health plans (Individual/Family). However, “deductibles, copayments and other amounts that do not include premiums will have a maximum limit of $6,750 for individual coverage” and “a maximum limit of $13,500 for family coverage” in 2019.
Disclaimer: These excerpts sourced from the EBA article, “From HSA to 401(k) contribution limits, 11 numbers to know for 2019“, should only be considered general information. Always consult with your benefits broker, a professional financial broker and/or the internal revenue service to determine current laws and legal obligations.
Source Article via Employee Benefit Adviser