The Internal Revenue Service has released 2019 annual inflation-adjusted limits for tax-favored employee benefits, including: Health Flexible Spending Arrangements (FSAs), Transit & Parking plans, and Qualified Small Employer Health Reimbursement Arrangements (QSE-HRAs).
Most allowances are eligible for annual cost-of-living adjustments (COLA). The sole exception is the catch-up allowance for HSAs, which remains at $1,000 from year-to-year.
Most 2019 inflation-adjusted benefit limits increase from 2018 amounts with the exception of the Dependent Care FSA and the HDHP minimum deductible for HSAs).
A Section 125 Cafeteria Plan begins with a basic Premium-Only Plan to pre-tax premiums and builds upon that with optional Flexible Spending Arrangements (Health, Limited, and Dependent Care FSAs) to cover out-of-pocket medical and dependent care expenses with pre-tax dollars and Health Savings Accounts (HSAs) that cover out-of-pocket medical costs plus build retirement savings with pre-tax salary deductions.
Here are the 2019 inflation-adjusted benefit limits for Cafeteria Plans, with historical information for comparison:
| Health Flexible Spending Arrangement (FSA) |
2019 | 2018 | 2017 | 2016 |
| Contribution allowed (annual limit) | 2,700 | $2,650 | $2,600 | $2,500 |
| Dependent Care Assistance Plan (DCAP) | 2019 | 2018 | 2017 | 2016 |
| Married filing separately (per spouse) | $2,500 | $2,500 | $2,500 | $2,500 |
| Married filing jointly | $5,000 | $5,000 | $5,000 | $5,000 |
| Single or Head of Household | $5,000 | $5,000 | $5,000 | $5,000 |
| Health Savings Account (HSA) |
||||
| HDHP Minimum Deductible | 2019 | 2018 | 2017 | 2016 |
| Individual coverage | $1,350 | $1,350 | $1,300 | $1,300 |
| Family coverage | $2,700 | $2,700 | $2,600 | $2,600 |
| HDHP Out-of-Pocket Maximum | 2019 | 2018 | 2017 | 2016 |
| Individual coverage | $6,750 | $6,650 | $6,550 | $6,550 |
| Family coverage | $13,500 | $13,300 | $13,100 | $13,100 |
| HSA Maximum Annual Contribution | 2019 | 2018 | 2017 | 2016 |
| Individual coverage | $3,500 | $3,450 | $3,400 | $3,350 |
| Family coverage | $7,000 | $6,900 | $6,750 | $6,750 |
| Catch-up allowance (age 55+) | $1,000 | $1,000 | $1,000 | $1,000 |
The Qualified Small Employer Health Reimbursement Arrangement allows employers with fewer than 50 employees to provide assistance for the purchase of individual health coverage and out-of-pocket medical expenses. The QSE-HRA is entirely employer funded and requires employees to purchase a health plan providing minimal essential coverage before reimbursements can be made from the plan.
| Qualified Small Employer HRA (QSE-HRA) |
2019 | 2018 | 2017 | 2016 |
| Individual Coverage | $5,150 | $5,050 | $4,950 | n/a |
| Family Coverage | $10,450 | $10,250 | $10,000 | n/a |
A Transit & Parking plan allows employees to set aside funds via pre-tax salary deductions to pay for transit passes, vanpooling, and parking necessary for them to work.
| Transit & Parking Plan |
2019 | 2018 | 2017 | 2016 |
| Parking expense (per month) | $265 | $260 | $255 | $255 |
| Transit expense (per month) | $265 | $260 | $255 | $255 |
Employers help adoptive parents offset the expense of adopting a child with a Section 137 Adoption Assistance Plan.
| Adoption Assistance Plan |
2019 | 2018 | 2017 | 2016 |
| Adoption expenses (annual limit) | $14,080 | $13,840 | $13,570 | $13,460 |
| Tax credit phase-out begins (MAGI) | $211,160 | $207,580 | $203,540 | $201,920 |
| Tax credit ends (MAGI) | $251,160 | $247,580 | $243,540 | $241,920 |
