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.
Click here to view a chart of inflation-adjusted limits for 2020.
Additional Resources:
- Revenue Procedure 2019-25: 2020 limits for HSAs and HDHPs
- IRS Notice 2019-59: 2020 limits for retirement plans
- Revenue Procedure 2019-44: 2020 limits for health FSAs, adoption assistance and transportation fringe benefits