Employers – Take a moment to learn about changes to the 2020 ACA and IRS Plan Limits
This communication is not intended to be legal advice and should not be construed as legal advice. If you have any legal questions or concerns about your plan, Norgard Insurance recommends seeking counsel from an ERISA attorney.
Health Savings Account limits
The latest published Health Savings Account limits for 2020 compared to 2019
Information in red indicates a change
Maximum Contributions Allowed by IRS
Below is current information on maximum contributions allowed by IRS for FSA Medical and Dependent Care Accounts as well as for Transportation Fringe Benefits compared to 2019.
Affordability Contribution Percentage under the ACA
Most employers do not know their employees’ household incomes so the Affordable Care Act (ACA) created a Safe Harbor in which any of the following can be used to determine ‘income’.
- The Employee’s W-2 Wages found in Box 1
- The Employee’s rate of pay – hourly wage rate x 130 hours
- The Individual Federal Poverty Level (FPL) – $12,490 (in the 48 contiguous states and Washington, DC)
