How Much Can I Put in My 401(k)? Or My HSA?

Get the answers to employees’ questions about contribution and savings limits for 2019

Stephen Miller, CEBS By Stephen Miller, CEBS December 19, 2018

Each year, the IRS and other federal agencies increase maximum contributions to employee benefit plans, based on the annual inflation rate. The video below summarizes 2019 limits for several popular employee benefits, as SHRM Online reported in recent articles.

For annual limits to 401(k) and similar retirement plans, employers should ensure that their payroll systems don't accept participant contributions that exceed the annual dollar limit, and they can also remind plan participants that the annual limit applies to total contributions to all 401(k) plans they may hold.

More employers are providing health savings accounts (HSAs) as an employee benefit combined with health deduction health plans, and more are making contributions to employees' HSAs, within annual limits.

A key feature of flexible spending accounts is that contributions are not subject to taxes, including Social Security and Medicare payroll (FICA) taxes.

Employer-funded parking and mass-transit subsidies are tax-exempt for employees up to monthly limits. Using pretax income, employees can also pay their own mass-transit or workplace parking costs through an employer-sponsored salary deferral program.

HR and payroll departments also should note that next year Social Security payroll taxes will increase on higher incomes, requiring employers to adjust their payroll systems.


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