IRS Announces 2020 Contribution Limits for Health Care FSAs and Qualified Transportation Plans
Today, the Internal Revenue Service announced the tax year 2020 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes (generally referred to as cost-of-living increases). Revenue Procedure 2019-44 provides details about these annual adjustments.The 2020 tax items of greatest interest to our clients that are employers and plans sponsors include:
- Annual Healthcare Flexible Spending Account (FSA) contribution limits will increase $50 from the current amount of $2,700 to $2,750.
- Monthly limit for transit and parking will increase $5 from the current amount of $265 to $270.
- Annual maximum reimbursement for a qualified small employer health reimbursement arrangement (QSEHRA) will increase $100 for individual coverage from the current amount of $5,150 to $5,250, and the maximum reimbursement amount will increase $150 for family coverage from the current amount of $10,450 to $10,600.
Please contact your Account Manager or Sales Executive for more information.
Links:
- 2020 HSA Limits (reminder–these were previously announced on 05/28/2019)
- IRS News Release 11/06/2019
- Revenue Procedure 2019-44
- 2019 Healthcare FSA limit $2,700; 2020 $2,750
- 2019 Monthly Parking Limit $265; 2020 $270
- 2019 Monthly Transportation Limit $265; 2020 $270
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