Captain Contributor
Shares

HSA and FSA Contribution Limits for 2019

Shares
Contribution Limits for 2019

Attention – there is good news for employer-sponsored benefit accounts in 2019! The IRS has raised the annual contribution limits for Health Savings Accounts, Flexible Spending Accounts, and Commuter benefit accounts. That means you can save more on healthcare expenses and pay less in taxes.

See the sections below for HSA, FSA, and Commuter benefit account contributions limits for 2019.

HSA Contribution Limits for 2019

The IRS released HSA contribution limits for 2019 back in May 2018. The government agency also announced out-of-pocket expense maximum limits and annual deductibles.

HSA contribution limits for both single and family coverage went up, as did maximums for out-of-pocket expenses. Annual deductibles remain the same.

2019 HSA Contribution Limits, Out-of-Pocket Maximums and Annual Deductibles

2019 2018
Self-only coverage HSA contribution limit $3,500 $3,450
Out-of-pocket expense limits (maximum) $6,750 $6,650
Annual deductible (minimum) $1,350 (no change) $1,350
Family coverage HSA contribution limit $7,000 $6,900
Out-of-pocket expense limits (maximum) $13,500 $13,300
Annual deductible (minimum) $2,700 (no change) $2,700

 

Learn more about HSAs:

  • So you want to know more about Health Savings Accounts (HSAs)?: An HSA is a tax-advantaged benefit account for people enrolled in a high-deductible health plan (HDHP). Account owners make pre-tax contributions each payday (or post-tax, which can be deducted on tax returns) to their HSA in order to pay for IRS-approved eligible expenses for themselves and their dependents.
  • FSA vs HRA vs HSA: A Comparison with Chart: For employer-sponsored healthcare benefit accounts, there are Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), and Health Savings Accounts (HSAs). On first glance, the three have a lot in common.

FSA Contribution Limits for 2019

On November 15, 2018, the IRS published the 2019 FSA contribution limits.

For 2019, FSA participants may contribute up to $2,700, which is an increase of $50. This applies to both health FSAs and limited purpose FSAs. For people with a Dependent Care FSA, the limit remains at $5,000.

2019 FSA Contribution Limits

2019 Annual Limit 2018 Annual Limit
Health FSA $2,700 $2,650
Limited Purpose FSA $2,700 $2,650
Dependent Care FSA $5,000 (no change) $5,000

 

Learn more about FSAs:

  • Let’s Talk about Flexible Spending Accounts: An FSA is an employer-sponsored benefit account that enables employees to set aside funds from each paycheck, before taxes, to help pay for out-of-pocket medical expenses for themselves and their dependents.
  • What is a Dependent Care Assistance Plan?: Do you have young children? An adult dependent who needs your help? Then a Dependent Care Assistance Plan (DCAP) might be just what you need! A DCAP plan is an employer-sponsored benefit that helps employees pay for the care of a qualified dependent.
  • HSA Owners: Let’s talk about the Limited Purpose FSA!: A limited purpose FSA (LPFSA) is a tax-advantaged benefit account available only to those with an HSA. You may use the LPFSA to pay for qualified vision and dental expenses.

2019 Transit and Parking Contribution Limits

In addition to raising the contribution limits for HSAs and FSAs, the IRS also raised the limits for qualified transportation fringe and parking benefits. Next year, the limits go from $260.00 to $265.00 per month.

Bicycle commuter benefit limits did not change and remain at $20.00 per month.

2019 Commuter and Parking Benefits

  2019 Monthly Limits 2018 Monthly Limits
Parking $265.00 $260.00
Mass Transit $265.00 $260.00
Commuter Highway $265.00 $260.00
Bicycle $20.00 (no change) $20.00

 

Learn more about how Transit and Parking benefits:

  • Make a Commuter Benefits Account Work for You: If you travel to and from work, you could be saving on those travel-related expenses with a Commuter (aka Transit) plan. A Transit/Commuter plan is an employer-sponsored fringe benefit where employees can use set-aside money to help cover the cost of commuter expenses.

Do you need help planning for expenses? This short video can help:

 

Sign up to receive personal thoughts from the Captain as well as news on FSAs and HSAs!

x