The IRS released on November 6, 2019, Revenue Procedure 2019-44 (PDF) with cost-of-living adjustments for tax-related amounts indexed for inflation. The IRS also announced the health savings account (HSA) and high deductible health plan (HDHP) annual deductible and out-of-pocket expense adjustments earlier this year in Revenue Procedure 2019-25.
New FSA Maximums
The maximum amount participants may contribute to the Health Care (and Limited Purpose) Flexible Spending Accounts in 2020 was increased to $2,750 (up from $2,700 in 2019). Additionally, the Dependent Care FSA maximum has remained at $5,000 for 2020. The Adoption Credit Limit has increased to $14,300 from $14,080. For plans with a non-calendar year effective date, the new maximum becomes effective with the next plan year.
New HSA Maximums
In 2020, individuals with self-only coverage will have a maximum of $3,550 (raised from $3,500 in 2019) to contribute to a Health Savings Account. Individuals with family coverage will have a maximum of $7,100 in 2020 (raised from $7,000 in 2019). The HSA Catch-Contribution Limit has remained at $1,000 both in 2019 and 2020.
New HDHP Maximums
The Minimum Annual Deductible for individuals with self-only coverage will increase from $1,350 to $1,400 and those with family coverage with have a minimum of $2,800, increased from $2,700. The Out-of-Pocket Expense Maximum increased from $6,750 to $6,900 for individuals and $13,500 to $13,800 for families.
New Transportation Maximums
The maximum monthly amounts participants may contribute to TSA Parking and Mass Transit plans has increased to $270 for each account (up from $265 each in 2019).
Please reference the chart below for direct comparisons related to respective plans:
|Welfare Plan Limits|
Health FSA Max
Dependent Care FSA Max
Adoption Credit Limit
HDHP Min Annual Deductible (Single)
HDHP Min Annual Deductible (Family)
HDHP Out of Pocket Max (Single)
HDHP Out of Pocket Max (Family)
HSA Max Contribution Limit (Single)
HSA Max Contribution Limit (Family)
HSA Catch-Contribution Limit (Not Indexed)
TSA Parking and Mass Transit Monthly Limit