IRS Announces 2020 Flexible Spending Arrangement (FSA) Contribution Limit

AdminBlog, Health & Welfare

The Internal Revenue Service (IRS) has announced that the 2020 limit on employee pre-tax FSA contributions will rise to $2,750, up from $2,700 in 2019. Revenue Procedure Bulletin 2019-44 provides the details of this and approximately sixty other tax-related annual inflation adjustments. The dependent care FSA maximum, which is set by statute and not subject to inflation-related adjustments, will remain … Read More

Overview of Selected HSA Banking Alternatives

AdminBlog, Private Self-Funded Health Plan

We’re frequently asked which is “the best” HSA bank for our clients’ employees, but it’s not an easy answer. Lately, employers are moving away from using traditional banks and toward online or investment banks to take advantage of longer term investment options and online fund access. Increasingly, employers are even pairing their HSA with their retirement savings vendor to help … Read More

Changes to the ACA Affordability Standard for 2020

AdminBlog, Health & Welfare, Multiemployer / Taft-Hartley Plan, Private Self-Funded Health Plan

Recently, the IRS issued Revenue Procedure Bulletin 2019-29, which decreases the affordability percentage under the Employer Mandate. The “affordability standard” is a component of ACA that is frequently overlooked. Employers should be reassessing their employee contribution structure annually to ensure compliance and avoid costly penalties (see below for updated penalty amounts). In order to determine affordability, the IRS sets an … Read More