On November 6th, the IRS released Revenue Procedure 2019-44 containing the annual cost-of-living adjustments for various tax provisions for the upcoming year.
The new maximum contribution amount for Flexible Spending Arrangements (FSAs) was included in this announcement. For 2020, the FSA maximum has increased from the 2019 maximum of $2,700 to $2,750.
Below are a few additional changes announced in the document:
- The maximum reimbursement from a qualified small employer health reimbursement arrangement (QSEHRA) is now $5,250 ($10,600 for family coverage).
- The monthly maximum regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $270; the monthly maximum for qualified parking is also $270.
- Regarding eligible long-term care premiums included in the term “medical care” the maximums are as follows:
Attained Age Before the Close of the Taxable Year |
Limitation on Premiums |
40 or less |
$430 |
More than 40 but not more than 50 |
$810 |
More than 50 but not more than 60 |
$1,630 |
More than 60 but not more than 70 |
$4,350 |
Visit the link below to view the Revenue Procedure 2019-44 in its entirety.
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