News & Press: Regulation

IRS Releases Cost of Living Adjustments for Certain Tax Provisions

Friday, November 16, 2018   (0 Comments)
Posted by: Martin Trussell
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Today, the IRS released IRS Revenue Procedure 2018-57 which provides the 2019 cost-of-living increases for inflation for certain items.  This follows the November 1 release of Notice 2018-83 which provided the 2019 COLA increases for retirement plans, including 401(k) plans.  Of interest to ECFC members are the following increases from 2018.
Taxable Years Beginning in 2019 Taxable Years Beginning in 2018
Limit on voluntary employee salary reduction contributions to a health flexible spending arrangement (Section 3.17 of Rev. Proc. 2018-57) $2,700 $2,650
Monthly limit on fringe benefit exclusion for transit and parking (Section 3.18 of Rev. Proc. 2018-57) $265 $260
Maximum exclusion for qualified adoption expenses furnished pursuant to an adoption assistance program (Section 3.20 of Rev. Proc. 2018-57) $14,080 $13,840
Maximum reimbursement from a qualified small employer health reimbursement arrangement (QSEHRA) (Section 3.62 of Rev. Proc. 2018-57) $5,150 ($10,450 for family coverage) $5,050 ($10,250 for family coverage)
Maximum contribution limit for employees contributing to a 401(k), 403(b) or 457 plan (Notice 2018-83) $19,000 $18,500