IRS Releases Inflation-Adjusted Items for 2020

Below please find the new amounts effective January 1, 2020:

Flexible Spending Accounts

  • Health FSA – increase by $50 to $2,750 per plan year.
  • Adoption Assistance FSA – the maximum amount that may be excluded from an employee’s gross income increases to $14,300.

Commuter Plan – Parking & Transit Account

  • The maximum monthly contribution amount will increase by $5 to $270.

Qualified Small Employer Health Reimbursement Arrangement

  • To qualify as a qualified small employer Health Reimbursement Arrangement, the total amount of payments and reimbursements cannot exceed $5,250 for single coverage and $10,600 for family coverage.