The Internal Revenue Service (IRS) has released Revenue Procedure 2020-45 in which it has updated many key employee benefit limits that it adjusts annually to account for inflation.
Effective for tax years beginning in 2021, the following limits will apply:
- IRC Section 125 health flexible spending arrangements (HFSA): $2,750/year
- IRC Section 132 qualified transportation fringe benefits: $270/month
- IRC Section 137 adoption assistance program expenses: $14,400/year (subject to phase out for individuals with adjusted gross income in excess of $216,660)
- IRC Section 9831 qualified small employer health reimbursement arrangement (QSEHRA): $5,300/year ($10,700/year for family coverage).
Please contact your EPIC account team with any questions regarding these updated limits.
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For further information on this or any other topics, please contact your EPIC consulting team.
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EPIC offers this material for general information only. EPIC does not intend this material to be, nor may any person receiving this information construe or rely on this material as, tax or legal advice. The matters addressed in this document and any related discussions or correspondence should be reviewed and discussed with legal counsel prior to acting or relying on these materials.
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