IRS Announces Pre-Tax Contribution Limits for 2020
by Vita, on November 6, 2019
The Internal Revenue Service recently announced annual inflation adjustments for 2020. IRS Rev. Proc. 2019-44 provides that for taxable years beginning in 2020, the following maximums apply for Health Flexible Spending Arrangements, Adoption Assistance Programs, and Commuter Benefits.
Health FSA Limit: The annual Health FSA limit will increase from $2,700 in 2019 to $2,750 in 2020.
Adoption Assistance Limit: The annual Adoption Assistance limit will increase from $14,080 in 2019 to $14,300 in 2020.
Commuter Benefits Limits: The monthly transit and parking limits will both increase from $265 in 2019 to $270 in 2020.
If you are a Vita Flex FSA Client who currently offers the IRS maximum and your plan renews January 1, 2020, your limits have been automatically increased for the 2020 plan year, unless you have previously requested otherwise. Any participant that has already made an election at the previous maximum will be contacted in order to confirm their desired election amount.
If you are a Vita Flex Commuter Benefits Client, the monthly pre-tax limit will be automatically increased to the IRS maximum for the January benefit month.