IRS Releases 2019 FSA and TRA Limits

IRS Releases 2019 FSA and TRA Limits

Nov. 16, 2018 – As of Nov. 15, 2018 the Internal Revenue Service (IRS) published Revenue Procedure 2018-57.  This publication states the IRS raised the Flexible Spending Account (FSA) limit to $2,700 for 2019. Additionally, Transportation Reimbursement Account (TRA) expense limits for parking and transit increased to a monthly rate of $265.

Action Steps

Employers should ensure that their health FSA will not allow employees to make pre-tax contributions in excess of $2,700 for 2019, and they should communicate the 2019 limit to their employees as part of the open enrollment process.

An employer may continue to impose its own health FSA limit, as long as it does not exceed the Affordable Care Act’s maximum limit for the plan year. This means that an employer may continue to use the 2018 maximum limit for its 2019 plan year.

If you have questions regarding FSA limit changes for 2019, contact your North Risk Partners advisor. Don’t have an advisor? No problem. We’ll help you find one.

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This regulatory 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.