The IRS issued new contribution limits for 2020 tax-advantaged accounts. The limits, adjusted for inflation annually, are effective January 1, 2020. Limits for cafeteria plans were adjusted slightly.
Flexible spending account (FSA) limits increased $50 for an annual total of $2,750. Notice 2019-59 highlighted adjustments to qualified retirement plans. Most notable was the catch-up contribution increase, which hasn’t increased since 2015. Employees age 50 and over can now contribute an additional $6,500 in pre-tax retirement plan contributions.
| CAFETERIA / SECTION 125 PLAN LIMITS | 2020 | 2019 |
| FLEXIBLE SPENDING ACCOUNT (FSA) includes limited-purpose FSA |
$2,750 | $2,700 |
| DEPENDENT CARE | $5,000 | $5,000 |
| ADOPTION ASSISTANCE | $14,300 | $14,080 |
| COMMUTER ASSISTANCE | $270 | $265 |
| PENSION PLAN AND 401(K) LIMITS | 2020 | 2019 |
| 401(K) / 403(B) DEFERRAL | $19,500 | $19,000 |
| 401(K) CATCH-UP CONTRIBUTION (50 and over) |
$6,500 | $6,000 |
| 414(Q) HIGHLY COMPENSATED EMPLOYEE | $130,000 | $125,000 |
| HEALTH SAVINGS ACCOUNT (HSA) LIMITS announced in May 2019 |
2020 | 2019 |
| SELF-ONLY CONTRIBUTION (employee + employer) |
$3,550 | $3,500 |
| FAMILY CONTRIBUTION (employee + employer) |
$7,100 | $7,000 |
| HSA CATCH-UP CONTRIBUTION (55 and over) |
$1,000 | $1,000 |
| SELF-ONLY HDHP MINIMUM DEDUCTIBLE | $1,400 | $1,350 |
| FAMILY HDHP MINIMUM DEDUCTIBLE | $2,800 | $2,700 |
| SELF-ONLY HDHP MAXIMUM OUT OF POCKET | $6,900 | $6,750 |
| FAMILY HDHP MAXIMUM OUT OF POCKET | $13,800 | $13,500 |
