IRS Announces 2020 Adjustments
Today, the IRS announced Revenue Procedure 2019-44 which provides the 2020 cost-of-living increases for inflation for certain items. In 2020, the:
- Annual Healthcare Flexible Spending Account (FSA) contribution limits will increase $50 from the current amount of $2,700 to $2,750
- Monthly limit for Transit and Parking will increase $5 each from the current amount of $265 to $270
- Annual maximum reimbursement for a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) will increase $100 for individual coverage from the current amount of $5,150 to $5,250, and the maximum reimbursement amount will increase $150 for family coverage from the current amount of $10,450 to $10,600
As a reminder, the IRS announced 2020 health savings account (HSA) contributions limit increases. In 2020, the annual HSA contribution limit for individual coverage will increase $50 from the current $3,500 to $3,550, and the family coverage contribution limit will increase $100 from the current $7,000 to $7,100.
If you have any questions, please contact American Benefits Group for more information.