IRS Announces 2020 Limits for Health FSAs and Transit Benefits

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IRS Announces 2020 Retirement Plan Contribution Limits
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Today, the Internal Revenue Service (IRS) announced annual inflation adjustments for more than 50 tax provisions, including an increase in voluntary employee contributions to employer-sponsored healthcare flexible spending arrangements (HFSAs) to $2,750 for plan years beginning in 2020, up from the 2019 limit of $2,700.

The IRS also announced an increase in the 2020 monthly limits for qualified transportation fringe benefits under Code § 132(f). For transportation in a commuter highway vehicle and mass transit passes, the limit will be $270 (up from $265 this year). The separate monthly limit for qualified parking also will increase to $270.

Details of this announcement can be found in Revenue Procedure 2019-44.

Kathy Berger

Kathy Berger is ThinkHR’s principal benefits consultant. She is a Certified Employee Benefits Specialist (CEBS) with over 25 years of experience working with brokers and employers. Kathy uses her extensive knowledge of ERISA, HIPAA, the ACA, and other benefits laws and regulations to assist our clients with practical information in clear language.

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