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2020 flex account contribution limits

IRS announces 2020 contribution limits

Authored by Bukaty Companies on November 18, 2019

The IRS issued new contribution limits this month for 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
Blog Category: Insurance, Benefits, HSA