2019 Contribution Limits to Employee Benefit Programs

With healthcare costs continuing to grow, employee benefit programs are becoming a must-have for your employees to pay for eligible expenses with tax-free dollars.

Below is a summary of the 2019 contribution limits for these various employee benefit programs: 

Health Flexible Spending Account (Health FSA)

• Employees may contribute up to $2,700 to a Health FSA.
• In addition, employers may contribute up to $500 or a dollar-for-dollar match of the employee’s contribution, whichever is greater.
• Carryover balances (of up to $500) do not count toward the contribution limits.

Dependent Care Flexible Spending Account (DC FSA)

• Employees may contribute up to $5,000 to a DC FSA if they file their taxes as a single or married jointly. 
• Employees may contribute up to $2,500 to a DC FSA if they are married but file their taxes separately. 
• Employers may contribute to a DC FSA, but employer contributions count toward the limits. 
• DC FSA limits do not adjust for inflation.

Commuter Plans

• The monthly contribution limit for mass transportation is $265.
• The monthly contribution limit for qualified parking is $265.
• Employees can participate in both a mass transportation and qualified parking plan.
• Employers may contribute to a Commuter Plan, but employer contributions count toward the limits. 

Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)

• The contribution limit is $5,150 for single coverage and $10,450 for family coverage.
• Only employers can contribute to a QSEHRA. Employee contributions are prohibited.

Health Reimbursement Arrangement (HRA) – other than a QSEHRA

• Employers establish the contribution limits.
• Only employers can contribute to the HRA. Employee contributions are prohibited.
• These type of HRAs include those that are integrated with a group health plan, those that only reimburse excepted benefits (e.g. dental/vision), and those that only reimburse former employees (e.g. retirees). 

Health Savings Account (HSA)

• Employees may contribute $3,500 if they have single coverage and $7,000 if they have family coverage.
• A catch-up contribution of $1,000 is available for people age 55 or older.
• Employers may contribute to the HSA, but employer contributions count toward the limits.
• Employees must be enrolled in a qualified high deductible health plan (HDHP) and meet other eligibility criteria to participate in an HSA.