Washington D.C. – Better late than never, the IRS finally announced the much-anticipated increases to Flexible Spending Accounts and Commuter Benefits for 2020.
For Healthcare Flexible Spending Accounts with plan years beginning on or after January 1, 2020, the maximum election has increased from $2,700 to $2,750.
The “Use-It-or-Lose-It” provisions of the 2.5 month Grace Period or the $500 Carryover remain unchanged.
For Commuter Benefits Programs, the monthly limit has increased from $265 to $270 for both mass transit and employment-related parking expenses for months on or after January 2020.
Dependent Care Assistance Program limits of $5,000 for taxpayers filing as Married Filing Jointly, and $2,500 for all other tax filers remain unchanged.
Please reach out to us with any questions on your plan.