The IRS announced an increase to flexible spending account (FSA) contribution limits for the 2020 plan year. Individuals can contribute $2,750 in 2020, up $50 from the previous year.
Since this announcement came so late in the year, some employers may not use the updated figures in their benefits limits—as doing so would require an addendum.
In fact, some employers have been known to use limits from the previous year because they cannot wait until this far into the enrollment season to release benefits materials. With that in mind, it wouldn’t be surprising if employers use the 2019 limits for their FSA plans in 2020.
In addition to the FSA contribution limits, the IRS announced increases for transportation benefits and adoption services. Qualified transportation benefit limits (for parking or transit passes) increased to $270 for 2020. Maximum employer subsidies for qualified adoption expenses rose to $14,300, up $220. Other adoption-related limits increased as well.
Recent Posts
The U.S. Department of Labor Announces Proposed Rule To Protect Indoor, Outdoor Workers From Extreme Heat
The U.S. Department of Labor has proposed a new rule aimed at protecting workers from extreme heat hazards. This initiative seeks to safeguard approximately 36 [...]
Supreme Court Overturns Chevron Deference: What It Means for Workplace Safety and Regulation
The landscape of federal regulation is set for a seismic shift following a recent Supreme Court decision. On June 28, in Loper Bright Enterprises, et [...]
Navigating the Compliance Maze: How NARFA Simplifies Employee Benefits for Automotive and Trade Industries
In today's complex regulatory environment, businesses in the automotive, roads, fuel, and related industries face unprecedented challenges in managing employee benefits. Recent studies show that [...]