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.