The IRS announced updated contribution limits for 401(k)s and other tax-advantaged accounts1 for 2020. These increases are more than just random numbers – they translate to significant opportunities for your employees to increase their potential to save for the future.
Below is a list of retirement, health and commuter-related account contribution limits announced by the IRS for 2019 and 2020. Why include 2019? Because owners of certain accounts, such as HSAs, can contribute funds toward their 2019 annual limit until April 15, 2020 (Tax Day).
RETIREMENT ACCOUNTS
HEALTH AND OTHER BENEFIT ACCOUNTS
![Health and other benefit accounts[1]](https://blog.healthequity.com/hs-fs/hubfs/Health%20and%20other%20benefit%20accounts%5B1%5D.jpg?width=1669&name=Health%20and%20other%20benefit%20accounts%5B1%5D.jpg)
Conclusion
The contribution limit increases for 2020 can bring significant savings for your employees, and, in some cases, if you contribute funds to your employees’ accounts, you could also potentially see significant tax1 savings.
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1 HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-free with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.
HealthEquity does not provide legal, tax, financial or medical advice. Always consult a professional when making life-changing decisions.
