FSA Friday: 2019 benefit contribution limits announced… except for one
October came and went in a flash, didn't it? It seems like just yesterday people were upset that summer was ending, and now we're already making holiday shopping plans. But in our little corner of the healthcare and finance world, October is usually when the IRS announces its healthcare benefit adjustments for the coming year.
They came a little later than expected, but the 2019 benefit limits are finally here. Well, all of them except one. And yeah, it's the one we want to know about most -- the 2019 FSA contribution limits.
We don't know why many other contribution numbers have been updated except for FSAs, but considering the upward trends demonstrated in other categories, there's reason to be optimistic about tax-free healthcare funds in 2019.
Retirement planners, rejoice! The IRS is giving you a well-deserved bump for 2019! Not only are 2019 HSA limits rising, but 401(k), 403(b) and 457 plan owners will see a $500 bump to their annual elective deferral limits. Taxpayers will be allowed to contribute up to $19,000 before taxes in 2019 into these accounts.
Even though the IRS kept the catch-up contribution limit at $6,000, this $500 boost will certainly be welcome by anyone looking to maximize their retirement funds.
Traditional IRA and ROTH IRA owners will enjoy a $500 boost of their own, with $6000 as the new contribution limit in 2019.
(We probably don't need to tell you what all these numbers mean, but we will anyway -- lower tax bills and more retirement savings.)
If you're self-employed, retirement funding is about to get easier, too. Now you can save an extra $1,000 into your own retirement accounts (increasing to $56,000 in 2019). These contributions will be determined by actual income, up to a maximum of $280,000, which is a $5,000 increase over this year.
We may have exaggerated a BIT in our own headline, since we're still waiting for announcements for few other 2019 adjustments - not just FSAs. This includes important items like federal income-tax brackets and potential changes to the standard deduction. And obviously, expected increases to flexible spending account contributions, which several sources are projecting to be $2,700.
Of course, as soon as we get the news, we'll share it here and on our social media platforms.
FSA Friday is a weekly roundup of the latest topics, tips and headlines to keep you updated on all things flex spending. It appears every Friday, exclusively on the FSAstore.com Learning Center. And for the latest info about your health and financial wellness, be sure to follow us on Facebook, Instagram, YouTube and Twitter.