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New FSA Limit Announced

New FSA Limit Announced

If all you want for Christmas is an extra $50 in your health FSA, you must have been very good this year. Santa is granting your wish and allowing just that much, as the new FSA contribution was announced last month! However, the gift that keeps on giving may be a little too late for some whose Open Enrollment periods have already ended. If you are one of the lucky ones that are still eligible to make changes to your health benefit elections, take a moment to read below; there are several benefit limitation changes for 2020.

  • The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) increases to $2,750.
  • The monthly limitation for qualified transportation fringe benefit regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $270. The monthly limit for qualified parking is also $270.
  • The total dollar amount of payments and reimbursements for any year under a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) cannot exceed $5,250 ($10,600 for family coverage).
  • HSA Limits previously released at the following amounts:
  • HDHP Minimum Annual Deductible - $1,400 Single and $2,800 Family
  • HDHP Out-of-Pocket Maximum - $6,900 Single and $13,800 Family
  • HSA Maximum Contribution Limits - $3,550 Single and $7,100 Family
  • HSA Catch-up Contributions remain at $1,000 

To view the latest updates, click here.

Do you still have questions about your health benefit options and what they mean? Check out the following blogs from Medcom Benefit Solutions; they may have just the answers you are searching to find!

What is an FSA, exactly?

Should I Invest in an HSA?

What's New with Commuter Benefits?