Compliance Alert: IRS Announces Increased Limits for Certain Employee Benefits
The Internal Revenue Service (IRS) has released Revenue Procedure 2019-44 in which it has updated many key employee benefit limits that it adjusts annually to account for inflation. Effective for tax years beginning in 2020, 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: $14,300/year (subject to phase out for individuals with adjusted gross income in excess of $214,520) IRC Section 9831 qualified small employer health reimbursement arrangement (QSEHRA): $5,250/year ($10 …
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