Health FSA Contribution Limit Increases to $2,750 for 2020 Plan Years

Today we are going to look at the increase in the FSA Contribution Limit in 2020. This revenue procedure was released in November of 2019 and changed the limit to $2,750.

Danielle Capilla, Alera Group's Director of Compliance, Employee Benefits, writes that employers who have been awaiting the 2020 FSA contribution limits will be pleased to see that the IRS has confirmed the limit of $2750, representing an increase of $50 over 2019. The Revenue Procedure also contains the cost-of-living adjustments that apply to dollar limitations in certain sections of the Internal Revenue Code.

As compliance get more complicated, it is essential that CFO's and senior HR executives find partners that can bring new, innovative, and effective strategies to extend their employee benefit investment. At TRUEbenefits we are experts in delivering programs that will drive down costs and drive up employee satisfaction.

Please see the links below for a deeper dive into the increase, as well as a video recap.

Deeper Dive: https://aleragroup.com/news/health-fsa-contribution-limit-increases-to-2750-for-2020-plan-years-110719/

Video Recap: https://vimeo.com/371888795/ca5bafefa2