IRS Releases 2020 Cost of Living Adjustments for FSAs & Commuter Accounts

Healthcare Flexible Spending Accounts
Likely too late for some employees to take advantage of, on November 6, 2019, the IRS released the new limits for flexible spending accounts (FSAs) in Revenue Procedure 2019-44.

An employee’s maximum contribution will increase to $2,750 in 2020 – up $50 from $2,700 in 2019. The increase also applies to limited purpose FSAs that are restricted to dental and vision care services and can be used alongside health savings accounts.

Commuter Benefit Accounts
Revenue Procedure 2019-44 also included higher annual adjustments for qualified transportation and parking benefits. Exclusion amounts increased to $270 per month in 2020, from $265 per month in 2019.

Health Savings Accounts
Earlier this year, the IRS released new HSA contribution limits for 2020 to help plan sponsors and participants budget for the upcoming year. Click here to learn more.

Alegeus will continue to keep you up to date as the IRS releases the cost of living adjustments for other benefit accounts.

Sign up for our newsletter

Related content

See all insights

Treat yourself using your FSA before it expires

Prioritizing Employee Wellness During the Holidays: A Guide for Employers

Far & Wide: Open Enrollment for a Remote Workforce

The Growing Wave of HSA Adoption: A Look at Current Trends

IRS Releases 2024 FSA Contribution Limits

Best-In-Class Open Enrollment Strategies

HSAs: Past, Present & Future

Navigating Open Enrollment: Terminology and Employee Outreach

Case Study: The Value of an End-to-End HSA Solution

The most common HSA questions – answered

Annual Benefit Plan Limits

October is HSA Month