Many employee benefits are subject to annual dollar limits that are periodically updated for inflation by the IRS, including the following:
- High deductible health plans (HDHPs) and health savings accounts (HSAs)
- Health flexible spending accounts (FSAs)
- 401(k) plans, and
- Transportation fringe benefit plans.
For 2020, there will be an increased limit in HSA contributions for those with individual or family coverage under an HDHP as well as an increase to FSA contribution limits and transportation fringe benefit plans limits. Other highlights for the upcoming year include increased limits for elective deferrals to 401(k) plans, catch-up contributions to 401(k) plans, and tax exclusion for adoption assistance benefits.