TO: Clients of Brown & Brown Insurance Services of California, Inc. RE: 2019 Health FSA and Sec. 132 Limits
The U.S. Treasury has finally announced the 2019 limits for Sec. 125 health flexible spending accounts (FSAs) and Sec. 132 Parking & Transit. See Revenue Procedure 2018-57 for complete details. See our 2019 IRS Guidelines handout for a complete list of benefits related limits. Key Provisions: • The 2019 annual limit for FSA’s is $2,700 – an increase of just $50. o Reminder: If you allow for a rollover, that amount is not included towards the maximum amount of salary reductions allowed for the year. • The 2019 monthly limit for parking and transit has increased to $265 for parking and transit – an increase of just $5. Action Items: An amendment must be adopted before the last day of the Plan year if you wish to change the FSA limit. If your plan does not include the statutory maximum and you wish to increase the limit you must amend your Plan. Notify your Sec. 125 administrator that you wish to increase the maximum.
If your employees have already made their elections and you wish to allow the new maximum you must provide them with a new enrollment window in which to do so.
What’s Next: Contact your B&B Account team if you have any questions.
The information provided in this legislative update for our clients and colleagues is for general guidance only and is not intended to be, and does not constitute, tax or legal advice. We recommend that you consult with your tax and legal advisors for the interpretation or application of any laws for your particular circumstances and situation.