When it comes to federal income taxes, nothing ever seems uncomplicated. But we do strive to bring you the latest news about changes in our tax code, so that you can avoid errors and plan appropriately. With that idea in mind, here are eleven new changes in various areas, that will affect both you and your employees in 2019.
These new figures took effect January 1, so make sure you’ve updated your records.
- 401(k) pre-tax contribution limit for 2019 has been increased from $18,500 to $19,000 this year. This limit also applies to 457, 403(b), and Thrift Savings Plans.
- The catch-up contribution limit for the same qualified retirement plans will remain at $6,000 for 2019. This type of contribution is available to those age 50 and over only.
- The IRA contribution limit has been increased from $5,500 to $6,000. The catch-up contribution limit for IRAs remains at $1,000.
- The new health savings account (HSA) contribution limit for individual coverage will be $3,500 in 2019.
- For those with family plans, HSA contribution limit will be $7,000.
- The HSA catch-up contribution limit for those age 55 and older will remain at $1,000 this year.
- The flexible spending account (FSA) contribution limit is increased to $2,700.
- The minimum deductible for high deductible health plans (HDHP) remains the same this year, at $1,350 for individual plans.
- The minimum deductible for HDHP family plans remains at $2,700.
- The maximum out-of-pocket expenditure for individual HDHPs will be $6,750 in 2019. This maximum applies to expenses other than premiums, such as deductibles and co-pays.
- The out-of-pocket maximum for family HDHPs will be $13,500.
If you have any questions about these items, please call our office to clarify. We’ll be happy to help you determine how these changes apply to you and your employees.