Posted on November 6th, 2019 The IRS has released Revenue Procedure 2019-44 which details the 2020 pre-tax limits for the Health FSA and Commuter Plans. These limits are effective for plan years that begin on or after January 1, 2020. Below is a summary of the newly released limits: Health Flexible Spending Account (Health FSA)
- Employees may contribute up to $2,750 to a Health FSA.
- In addition, employers may contribute up to $500 or a dollar-for-dollar match of the employee’s contribution, whichever is greater.
- Carryover balances (of up to $500) do not count toward the contribution limits.
- The monthly contribution limit for mass transportation is $270.
- The monthly contribution limit for qualified parking is $270.
- Employees can participate in both a mass transportation and qualified parking plan.
- Employers may contribute to a Commuter Plan, but employer contributions count toward the limits.
Dependent Care Flexible Spending Account (DC FSA)The limits for the Dependent Care FSA have not changed.
- Employees may contribute up to $5,000 to a DC FSA if they file their taxes as a single or married jointly.
- Employees may contribute up to $2,500 to a DC FSA if they are married but file their taxes separately.
- Employers may contribute to a DC FSA, but employer contributions count toward the limits.
- DC FSA limits do not adjust for inflation.
Health Savings Account (HSA)As a reminder, the 2020 HSA contribution limits were released earlier this year.
- Employees may contribute $3,550 if they have single coverage and $7,100 if they have family coverage.
- A catch-up contribution of $1,000 is available for people age 55 or older.
- Employers may contribute to the HSA, but employer contributions count toward the limits.