19 November 2018 IRS releases fringe benefit inflation adjustments for 2019 Medical Savings Account (MSA) limits go up in 2019 Summarized below are the 2019 limits that apply to MSAs under IRC Section 220(c)(2)(A). Provision | Self-only coverage | Family coverage | High deductible health plan: annual deductible | Not less than $2,350 (up from $2,300 in 2018) and not more than $3,500 (up from $3,450 in 2018) | Not less than $4,650 (up from $4,550 in 2018) and not more than $7,000 (up from $6,850 in 2018) | Annual out-of-pocket (other than for premiums) | Not to exceed $4,650 (up from $4,600 in 2018) | Not to exceed $8,550 (up from $8,400 in 2018) |
Adoption assistance limit goes up in 2019 The limit on qualified adoption assistance (including special needs children) under IRC Section 23(a)(3) for 2019 is $14,080, up from $13,810 for 2018. For 2019, the amount excludable from an employee's gross income begins to phase out under IRC Section 137(b)(2)(A) for taxpayers with modified adjusted gross income in excess of $211,160 and is completely phased out for taxpayers with modified adjusted gross income of $251,160 or more. Health flexible spending account (FSA) limit goes up in 2019 The 2019 annual limit on the amount of pretax contributions employees can make toward their health flexible spending account through a cafeteria plan under IRC Section 125(i) is $2,700, up from $2,650 in 2018. Transportation fringe benefits (parking and transit) increases in 2019 The 2019 monthly limit on parking benefits under IRC Section 132(f)(2)(B) is $265, up from $260 in 2018. The 2019 aggregate monthly limit for transportation in a commuter highway vehicle and any transit pass under IRC Section 132(f)(2)(A) is also $265, an increase from $260 in 2018. Reporting penalties for Forms W-2/1099 increase in 2020 The penalties that apply to late or incorrect Forms W-2 is indexed each year for inflation. Following are the penalties that apply to late or incorrect Forms W-2 required to be furnished to employees and/or filed with the Social Security Administration in 2020. Section 6721 Failure to timely file an accurate information return with IRS (for returns required to be filed in 2020) | Filed/Corrected | | | | On or After | On or Before | Penalty | Maximum | Max.small employer | 1/1 | 1/31 | $0 | N/A | N/A | 2/1 | 2/28 | $50 | $556,500 | $194,500 | 3/1 | 8/1 | $100 | $1,669,500 | $556,500 | 8/1 | | $270 | $3,339,000 | $1,113,000 | | | intentional disregard | $540 | no limit | no limit |
Section 6722 Failure to timely furnish an accurate employee statement (for returns required to be filed in 2020) | Filed/Corrected | | | | On or After | On or Before | Penalty | Maximum | Max.small employer | 1/1 | 1/31 | $0 | N/A | N/A | 2/1 | 2/28 | $50 | $556,500 | $194,500 | 3/1 | 8/1 | $100 | $1,669,500 | $556,500 | 8/1 | | $270 | $3,339,000 | $1,113,000 | | | intentional disregard | $540 | no limit | no limit |
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ATTACHMENT Document ID: 2018-2317 |
