2019 Cost-of-Living Adjustments for Welfare Benefits
Legal Alert
The IRS has announced the 2019 cost-of-living adjustments for various welfare benefit plan dollar limits. The 2019 limits are as follows:
| Limit | 2018 | 2019 | |
| Health FSA Contribution Limits | |||
| Section 125(i) limit on employee contributions to health FSAs | $2,650 | $2,700 | |
| Transportation Fringe Benefits | |||
| Section 132(f)(2)(A) monthly limit for transportation fringe benefits | $260 | $265 | |
| Section 132(f)(2)(B) monthly limit for qualified parking fringe benefits | $260 | $265 | |
| Adoption Assistance Exclusion/Adoption Credit | |||
| Section 137(a)(2) exclusion for adoption of a child with special needs | $13,840 | $14,080 | |
| Section 137(b)(1) maximum credit for qualified adoption expenses for other adoptions | $13,840 | $14,080 | |
| Both the exclusion and credit limits will begin to be phased out for individuals with modified adjusted gross income greater than $211,160 and will be entirely phased out for individuals with modified adjusted gross income of $251,160 or more. These income levels are $3,580 higher than for 2018. | |||
Earlier this year, the IRS also announced the 2019 limitations for Health Savings Accounts and the ACA affordability percentage. The Department of Health and Human Services also previously announced the 2019 overall out-of-pocket maximum applicable to all non-grandfathered group health plans under the ACA. The limits for 2019 are as follows:
HSA Contribution Limits
| Single Coverage | Family Coverage | Age 55+ Catch-Up |
| $3,500 | $7,000 | $1,000 |
| Single Coverage | Family Coverage | |
| HDHP Minimum Deductible | $1,350 | $2,700 |
| HDHP Out-of-Pocket Maximum | $6,750 | $13,500 |
| Single Coverage | Family Coverage | |
| ACA Out-of-Pocket Maximum | $7,900 | $15,800* |
*The Single Coverage Maximum applies to each individual enrolled in Family Coverage. Once an individual enrolled in Family Coverage incurs $7,900 in out-of-pocket expenses, the plan must pay 100% of the cost of covered in-network services for that individual.
| ACA Affordability | 2018 | 2019 |
| Section 36B(c)(2)(C)(i)(II) affordability percentage | 9.56% | 9.86% |
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