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.
For more
information on these or other benefits plan limits, please speak with Better
Business Planning, Inc. at 630-775-8545 today.
Source: Zywave, 2019.
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