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.