The Internal Revenue Service (IRS) has announced an increase in the annual deferral limit for participants in employer-sponsored retirement plans such as the 457 Program as well as in health savings and commuter spending accounts.
For 2019, the limit has increased to $19,000 from $18,500. The additional “catch-up” amount that participants age 50 and older can contribute each year remains at $6,000, for an annual total of $25,000. More information is available from this IRS publication.
How you can help
Regular increases in contribution levels are one of the primary drivers of retirement readiness. You can help by notifying employees about the increase in the annual limit, reminding them of the availability of catch-up contributions for participants age 50 and older. Also highlight the ease of logging in to www.texasaver.com to increase deferral amounts.
Health savings account (HSA)
The maximum contribution increase for calendar year 2019 will be $3,500 individual and $7,000 family.
An HSA is a tax-advantaged medical savings account. Participants enrolled in Consumer Directed HealthSelectSM can contribute to and draw money from their HSA to pay for certain medical expenses. HSAs can be used for out-of-pocket medical, prescription drug, dental and vision expenses. For questions about HSAs, call Optum Bank toll-free at (866) 234-8913 (TTY: 711)
Commuter spending account (CSA)
The maximum contribution increase for calendar year 2019 will be $265 a month for both parking and transit accounts for the CSA.
Employees who participate in a CSA set aside money to pay for eligible parking and transit expenses for commuting to and from work. For questions about the CSA program, call TexFlex customer care at (844) 884-2364 (TTY: 711); Monday – Friday between 7 a.m. and 7 p.m. CT.