Legislative Updates
November 8th, 2019
On Thursday, November 7th 2019, the IRS announced the new limits for 2020 with respect to Health FSAs, Transportation/Commuter Plans, and Qualified Parking Plans as listed below:
|
Type of Plan
|
2019 | 2020 |
| Health FSA | $2,700/annual | $2,750/annual |
| Dependent Care FSA | $2,500 or $5,000*/annual | No Change |
| Transportation/Commuter Plan | $265/month | $270/month |
| Parking Plan | $265/month | $270/month |
*$2,500 for married individuals filing separate tax returns and $5,000 for married individuals filing joint tax returns or for unmarried individuals.
More details regarding the above annual adjustments can be found in the IRS Notice 2019-59 and Revenue Procedure 2019-44.
Additionally, earlier this year, the IRS had also released the new HSA contribution limits and high-deductible health plan (HDHP) amounts for 2020 as listed below:
|
Type of Plan
|
2019
|
2020
|
| HSA Annual Contribution Limits (Employer + Employee) | Self-only: $3,500 Family: $7,000 |
Self-only: $3,550 Family: $7,100 |
| HSA Catch-up Contributions (Age 55 or older) | $1,000 | No Change |
| HDHP Minimum Deductibles | Self-only: $1,350 Family: $2,700 |
Self-only: $1,400 Family: $2,800 |
| HDHP Maximum Out-of-Pocket Amounts | Self-only: $6,750 Family: $13,500 |
Self-only: $6,900 Family: $13,800 |
Please note: Employees must be enrolled in a high-deductible health plan in order to participate in an HSA.
Please feel free to contact our office with any questions.