IRS ANNOUNCES INCREASES TO FSA AND COMMUTER BENEFITS…

The IRS has just announced increases to the maximum elections for Health FSAs and Commuter Benefits. We have included a quick synopsis below. Should you have any questions, please contact your OCA representative.

Benefit Type

2019

2020

Flexible Spending Account (Annual Election)

$2,700

$2,750

Parking/Transit
(Monthly Election)

$265

$270

Effective January 1st, 2020, the new annual dollar limit for Health FSAs will increase to $2,750. For employers who currently allow the FSA maximum, OCA will automatically be increasing the new FSA maximum to reflect the increase. Dependent Care FSA remains at $5,000. In addition, the monthly limit for qualified transportation and parking benefits will increase to $270 per month. It was previously $265 for both transit and parking.