2020 Employee Benefits Plan Limits To Know

With a new year comes new limits to your employee benefits plan. The IRS announced cost-of-living adjustments to the annual dollar limits for various welfare and retirement plan limits for 2020. Although some of the limits will remain the same, most will increase for the next year.

Here are those changes:

401(k) limits

  • Pre-tax contributions: $19,500 (up $500 from 2019)
  • Catch-up contributions: $6,500 (up $500 from 2019)

Health Savings Account (HSA) Limits

  • Pre-tax contributions:
    • Single coverage: $3,550 (up $50 from 2019)
    • Family coverage: $7,100 (up $100 from 2019)
  • Catch-up contributions: $1,000 (no change from 2019)

High Deductible Health Plan (HDHP) Limits

  • HDHP minimum deductible
    • Single coverage: $1,400 (up $50 from 2019)
    • Family coverage: $2,800 (up $100 from 2019)
  • HDHP maximum out-of-pocket costs
    • Single coverage: $6,900 (up $150 from 2019)
    • Family coverage: $13,800 (up $300 from 2019)

Flexible Spending Account (FSA) Limits

  • Contributions: $2,750 (up $50 from 2019)

For more information on any of these limits, please reach out to us! We’re happy to walk through it with you.