The IRS has announced that employees will be able to contribute more into their qualified retirement and health care flexible spending accounts (FSA) in 2020.
The limits are as follows:
The contribution limit for retirement plans increased from $19,000 to $19,500
The catch-up contribution limit on the retirement plans for employees aged 50 and over has increased from $6,000 to $6,500.
The FSA contribution limit rises to $2,750 from $2,700 in 2019.
The open enrollment kit reflects last year’s limits due to the late timing of this announcement.
If you wish to increase your annual contribution to the new FSA maximum amount of $2,750 for 2020, you will need to make a new election through HCM during Open Enrollment. Retirement contributions can be adjusted at any time during the year. If you wish to make an adjustment to your supplemental retirement contribution, access Retirement Forms the Human Resources website.