The IRS recently announced cost-of-living adjustments to the annual dollar limits for various welfare and retirement plan limits for 2019. Although some of the limits will remain the same, many of the limits will increase for 2019.
The ACA imposes a maximum dollar limit on employees’ salary reduction contributions to a health FSA. Although the ACA set this limit at $2,500, the limit is indexed for cost-of-living adjustments each year. On Nov. 15, 2018, the IRS announced that, for taxable years beginning in 2019, the dollar limit on employees’ salary reduction contributions to a health FSA will increase to $2,700.
Contact your Stellar representative for further information regarding this notification.