2020 IRS Contribution Limits Released

November 6, 2019

The IRS released contribution limits for 2020 as part of Revenue Procedure 2019-44. These include 2020 FSA contribution limits, which increase to $2,750. The new limits are:

2020 IRS contribution limits

Medical Flexible Spending Account

2019

2020

Medical FSA contribution limit

$2,700

$2,750

 

Commuter Benefits

2019

2020

Commuter Benefits monthly limit

$265

$270

 

Adoption Assistance

2019

2020

Limit

$14,080

$14,300

 

Qualified Small Employer Health Reimbursement Arrangement

2019

2020

Self-only QSEHRA contribution limit

$5,150

$5,250

Family QSEHRA contribution limit

$10,450

$10,600


Previously announced

Health Savings Account

2019

2020

Self-only HSA contribution limit

$3,500

$3,550

Family HSA contribution limit

$7,000

$7,100

 

2020 IRS contribution limits 

Medical Flexible Spending Accounts (Medical FSAs)

The 2020 Medical FSA contribution limit will be $2,750, an increase of $50 from the 2019 limits.

Commuter Benefits

The monthly Commuter Benefits limit for mass transit and parking will increase $270 for 2020. That’s up $5 from the 2019 limit.

Adoption Assistance Programs

The maximum amount that may be excluded from an employee’s gross income for the adoption of a special needs child through an adoption assistance program is $14,300 in 2020. That amount is the same as what may be excluded from that employee’s gross income for expenses incurred by an employer for qualified adoption expenses within the program.

Qualified Small Health Reimbursement Arrangements (QSEHRAs)

Employer contribution limits for QSEHRAs are $5,250 for single and $10,600 for families.

Health Savings Accounts (HSAs)

The IRS had previously announced 2020 HSA contribution limits. The limit is $3,550 for an individual and $7,100 for family.

Learn more about HSAs, FSAs, Commuter Benefits and other employee benefits plans by downloading our Ultimate Guide to Benefits today!

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