When you participate in a payroll deduction program through your employer, deductions can be taken from your payroll before calculating your taxable federal income, FICA (Social Security and Medicare) tax and for most states, taxable state income. By taking deductions pre-tax, you reduce the dollars on which you are taxed and, as a result, reduce your total tax bill.
The IRS has announced the 2019 contribution maximums for Flexible Spending Account (FSA) plans in the newly released Revenue Procedure 2018-57. Contribution limits increased for the Health FSA, Commuter Benefits and Adoption Assistance program, while limits for the Dependent Care FSA remained unchanged.
Health Flexible Spending Account
The Health FSA, which provides employees the ability to set aside money on pre-tax basis to pay for eligible medical, dental, and vision expenses will have an increase to its contribution maximum from $2,650 to $2,700 for 2019. The new contribution limit will also apply to the Limited Purpose FSA which reimburses eligible dental and vision expenses.
Commuter Benefits
Commuter Benefits help employees pay for certain parking, mass transit and/or vanpooling expenses with pre-tax dollars. The contribution limits for this account will increase from $260 to $265 for 2019.
Adoption Assistance
The Adoption Assistance FSA helps employees pay eligible adoption expenses such as agency fees and court costs by contributing to the account with pre-tax money from their paycheck. The contribution limits for this account will increase from $13,840 to $14,080 for 2019.
2018 and 2019 Contribution Amounts
Benefit 2018 | 2019
Health FSA $2,650 | $2,700
Limited Purpose FSA $2,650 | $2,700
Dependent Care $5,000 | $5,000
Parking/Transportation $260 / $260 | $265 / $265
Adoption Assistance $13,840 | $14,080
Questions? Contact us at 855.890.7239 or send an email to customerservice@nuesynergy.com.
Health Flexible Spending Account
The Health FSA, which provides employees the ability to set aside money on pre-tax basis to pay for eligible medical, dental, and vision expenses will have an increase to its contribution maximum from $2,600 to $2,650 for 2018. The new contribution limit will also apply to the Limited Purpose FSA which reimburses eligible dental and vision expenses.
Commuter Benefits
Commuter Benefits help employees pay for certain parking, mass transit and/or vanpooling expenses with pre-tax dollars. The contribution limits for this account will increase from $255 to $260 for 2018.
Adoption Assistance
The Adoption Assistance FSA helps employees pay eligible adoption expenses such as agency fees and court costs by contributing to the account with pre-tax money from their paycheck. The contribution limits for this account will increase from $13,570 to $13,840 for 2018.
2017 and 2018 Contribution Amounts
Benefit 2017 | 2018
Health FSA $2,600 | $2,650
Limited FSA $2,600 | $2,650
Dependent Care $5,000 | $5,000
Parking/Transportation $255 / $255 | $260 / $260
Adoption Assistance $13,570 | $13,840
Questions? Contact us at 855.890.7239 or send an email to customerservice@nuesynergy.com.
