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IRS Releases 2020 Health FSA and Commuter Limits

Posted on November 6th, 2019

The IRS has released Revenue Procedure 2019-44 which details the 2020 pre-tax limits for the Health FSA and Commuter Plans. These limits are effective for plan years that begin on or after January 1, 2020. Below is a summary of the newly released limits:

Health Flexible Spending Account (Health FSA)

  • Employees may contribute up to $2,750 to a Health FSA.
    • In addition, employers may contribute up to $500 or a dollar-for-dollar match of the employee’s contribution, whichever is greater. 
  • ​Carryover balances (of up to $500) do not count toward the contribution limits.

Commuter Plans

  • The monthly contribution limit for mass transportation is $270.
  • The monthly contribution limit for qualified parking is $270.
  • Employees can participate in both a mass transportation and qualified parking plan.  
  • Employers may contribute to a Commuter Plan, but employer contributions count toward the limits. 

Dependent Care Flexible Spending Account (DC FSA)

The limits for the Dependent Care FSA have not changed. 

  • Employees may contribute up to $5,000 to a DC FSA if they file their taxes as a single or married jointly.  
  • Employees may contribute up to $2,500 to a DC FSA if they are married but file their taxes separately.  
  • Employers may contribute to a DC FSA, but employer contributions count toward the limits.  
  • DC FSA limits do not adjust for inflation. 

Health Savings Account (HSA)

As a reminder, the 2020 HSA contribution limits were released earlier this year. 

  • Employees may contribute $3,550 if they have single coverage and $7,100 if they have family coverage.  
  • A catch-up contribution of $1,000 is available for people age 55 or older. 
  • Employers may contribute to the HSA, but employer contributions count toward the limits. 

Have a question about FSAs, HSAs, or Commuter Plans?

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