IRS 2020 Plan Maximums and Limits

To date, the IRS has released a number of HSA and ACA maximums and limits applicable to 2020 health and welfare plans. See below for the 2020 numbers along with comparisons to 2019. We will update this page as the IRS releases more 2020 maximums and limits throughout the year.

Cafeteria Plans:

2019 2020
Health FSA Maximum: $2,700 $2,750
Dependent Care Assistance Plans (Dependent Care FSA) annual maximum (unless married filing separately): $5,000 $5,000
Dependent Care Assistance Plans (Dependent Care FSA) annual maximum (if married filing separately): $2,500 $2,500
Medical mileage rate to obtain medical care (reimbursable by a Health FSA): $0.20 TBA
Compensation amount for determining Highly Compensated Employee: $125,000 $130,000
Compensation amount for determining Key Employee (officers/owners earning over): $180,000 $185,000

Health Savings Accounts (HSAs):

2019 2020
Minimum annual HDHP deductible – Single: $1,350 $1,400
Minimum annual HDHP deductible – Family: $2,700 $2,800
Annual HSA Contribution Limit – Single: $3,500 $3,550
Annual HSA Contribution Limit – Family: $7,000 $7,100
Plan Out-of-Pocket Max for HSA Eligibility – Single: $6,750 $6,900
Plan Out-of-Pocket Max for HSA Eligibility – Family: $13,500 $13,800
Annual HSA Contribution Limit – Age 55+ catch-up: $1,000 $1,000

Affordable Care Act (ACA):

2019 2020
Plan Out-of-Pocket Max for ACA Compliance – Individual: $7,900 $8,200
Plan Out-of-Pocket Max for ACA Compliance – Family: $15,800 $16,400
ACA Affordability Percentage: 9.86% 9.78%

Transportation Fringe Benefits (per month):

2019 2020
Parking: $265 $270
Transit Passes & Vanpooling: $265 $270

For more information or questions regarding how the limits impact your plan, feel free to contact us.

Jon Cauble is the newest member of the ProBenefits Compliance Team. Recently earning his Master of Studies in Law, he coordinates much of the day-to-day compliance support for plans and clients. This allows our two benefits attorneys, Jason Cogdill (General Counsel) and Laura Bibb (Senior Compliance Counsel), to manage the compliance initiatives and services provided by ProBenefits, serve as resources for employers and plan advisors, and deliver outside presentations on a range of benefits compliance topics.