On November 6, 2019, the Internal Revenue Service announced in Revenue Procedure 2019-44 the annual inflation adjustments for more than 60 tax provisions for 2020, including the tax rate schedules, and other tax changes. Employers should be aware of the new 2020 benefit limits. This Revenue Procedure provides details about these annual adjustments:
Flexible Spending Accounts (FSA)
Annual maximum contributions for medical FSA increased to $2,750 from $2,700.
Parking and Transit
Monthly limit for qualified transportation/transit fringe benefit is $270 from $265.
Monthly limit for qualified parking is also $270 from $265.
Maximum reimbursements for any year cannot exceed $5,250 for individuals and $10,600 for family coverage from $5,150 and $10,450, respectively.
Health Savings Accounts (HSA) – previously released in Revenue Procedure 2019-25
Annual minimum deductible $1,400
Maximum out of pocket $6,900
Maximum contribution $3,550
Annual minimum deductible $2,800
Maximum out of pocket $13,800
Maximum contribution $7,100
Catch up $1,000
In addition to 2020 benefit limits and tax adjustments, employers can benefit from learning more about benefits in general. Visit the IRS Employee Benefits page to learn more.
Request a proposal for BASIC benefits administration today!