HSAs can be very powerful investment tools. In order to make the most of yours, keep in mind these pointers: – Determine how much you can afford to invest. – Set goals for how much you want to save. – Consider your options regarding your age, funds, and other factors.
Wex & 2019 Annual Cost-of-Living Adjustments
On November 15th, 2018, IR-2018-222 of the Internal Revenue Service (IRS) announced the 2019 annual cost-of-living inflation adjustments, which included increased limits for flexible spending accounts (FSAs), transportation fringe benefits, and qualified parking expenses.
A summary of the 2019 IRS contribution limits and their impacts on health benefit accounts is provided below and is summarized in the 2019 IRS Numbers You Need to Know document, available on Partner Central/Marketing Resources or by clicking here.
Changes announced in the latest IRS announcement are as follows:
- The 2019 maximum Health FSA Salary reduction contribution has been increased to $2,700 (up $50 from 2018).
- The monthly limit on fringe benefit exclusion for transportation fringe benefit and qualified parking has been increased to $265(up $5 from 2018).
IMPACT TO WEX HEALTH CLOUD PLAN SETUP AND RENEWAL
What does this all mean, and what action is required? The good news: WEX Health is handling it for you. Here’s how:
HEALTH FLEXIBLE SPENDING ACCOUNTS
The adjusted health FSA pre-tax salary reduction limit is per employee, per employer, per plan year starting January 1st, 2019.
WEX Health Cloud allows you complete control to configure the FSA maximum by plan, so you can easily make the maximum contribution adjustment at plan design when setting up a new plan.
As of today, when you create new 2019 plans within WEX Health Cloud, the default FSA maximum value will be updated to reflect the new 2019 limit of $2,700.
For pre-existing 2019 plans that have already been set up, the WEX Health Cloud product development team will be running a script to increase the FSA limit to reflect these new changes.
We are currently working to make the following adjustments:
- The maximum employee contribution will be changed from $2,650 to $2,700 for 2019 plans already set up in the WEX Health Cloud system.
- The change will be made at the administrator level. You can choose to opt out of this change, but we are not able to opt out plans by individual employer groups.
If you do not want your plans updated, please submit a Support Request (SR) with the category of Configuration Data Change > 2019 Opt Out, by December 7th, 2018.
COMMUTER AND QUALIFIED PARKING BENEFITS
WEX Health Cloud does NOT default the monthly contribution maximums, so we will not make any changes to contribution fields for commuter and parking benefits. However, we will be changing the database value to cap reimbursement of these plans to the new maximum ($265) beginning January 1st, 2019.