Transportation Plan and QSEHRA Plan Limit Projections for 2019

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The Tax Cuts and Jobs Act (aka “Tax Reform”) enacted December 22, 2017, changed the measure of inflation to the average chained CPI-U (C-CPI-U) for the 12 month period ending August 31.

The August 2018 CPI was released September 13, 2018 by the Department of Labor and Thomson Reuters used the C-CPI-U for the 12 month period ending August 31 and has reported projected inflation adjustments for 2019 for health, charitable, compliance and other specialty items.

The updates for QSEHRA and Transportation benefits for 2019 are as follows:

Qualified small employer health reimbursement arrangement (QSEHRA) 2019

A QSEHRA under Code Sec. 9831(d)(2) is an arrangement which, among other requirements, makes payments and reimbursements for qualifying medical care expenses of an eligible employee.

The limits will change as follows:

  • $5,150 for the employee only; or
  • $10,450 for an employee plus family members of the employee

These limits are up slightly from $5,050 and $10,250 for 2018.

Qualified Transportation Plan benefits 2019

The limits for 2019 will remain the same.

  • Parking $260 per month
  • Transit (transit passes and/or transportation in a commuter highway vehicle) $260 per month

Note: These benefit plan adjustments are not official until the IRS releases a Revenue Procedure on this and other benefit limits later this fall and we will report any additional updates to these limits as they may become available.


Categories: Benefits in General, Compliance | Tags: QSEHRA , Transit , Parking , 2019 Limits , Qualified Small Employer HRA , Transportation Plans | Return