Many employee benefits are subject to annual dollar limits that are periodically updated for inflation by the IRS. The following commonly offered employee benefits are subject to inflation-adjusted dollar limits:

  • High deductible health plans (HDHPs) and health savings accounts (HSAs);
  • Health flexible spending accounts (FSAs);
  • 401(k) plans; and
  • Transportation fringe benefit plans.

The IRS typically announces the dollar limits that will apply for the next calendar year well in advance of the beginning of that year. This gives employers time to update their plan designs and make sure their plan administration will be consistent with the new limits.

This Compliance Overview includes a chart of the inflation-adjusted limits for 2019. Although some of the limits will remain the same, many of the limits increase for 2019.

Limit 2018 2019 Change
HSA Contribution Limit
Self-only $3,450 $3,500 Up $50
Family $6,900 $7,000 Up $100
Catch-up contributions* $1,000 $1,000 No change
HDHP Minimum Deductible
Self-only $1,350 $1,350 No change
Family $2,700 $2,700 No change
HDHP Out-of-pocket Maximum
Self-only $6,650 $6,750 Up $100
Family $13,300 $13,500 Up $200
Health FSA
Limit on employees’ pre-tax contributions $2,650 $2,700 Up $50
Dependent Care FSA*
Tax exclusion $5,000 ($2,500 if married and filing taxes separately) $5,000 ($2,500 if married and filing taxes separately) No change
Transportation Fringe Benefits (Monthly Limits)
Transit pass and vanpooling (combined) $260 $265 Up $5
Parking $260 $265 Up $5
401(k) Contributions
Employee elective deferrals $18,500 $19,000 Up $500
Catch-up contributions $6,000 $6,000 No change
Adoption Assistance Benefits
Tax exclusion $13,840 $14,080 Up $240

*Not subject to annual adjustment for inflation