This month’s Benefits Buzz announces the new FSA contribution limits and discusses the DOL’s new proposed method for retirement plan disclosures.
FSA Contribution and Other Benefits Limits Rise for 2020
The IRS announced an increase to flexible spending account (FSA) contribution limits for the 2020 plan year.
Individuals can contribute $2,750 in 2020, up $50 from the previous year.
Since this announcement came so late in the year, some employers may not use the updated figures in their benefits limits—as doing so would require an addendum.
In fact, some employers have been known to use limits from the previous year because they cannot wait until this far into the enrollment season to release benefits materials.
With that in mind, it wouldn’t be surprising if employers use the 2019 limits for their FSA plans in 2020.
In addition to the FSA contribution limits, the IRS announced increases for transportation benefits and adoption services.
Qualified transportation benefit limits (for parking or transit passes) increased to $270 for 2020.
Maximum employer subsidies for qualified adoption expenses rose to $14,300, up $220. Other adoption-related limits increased as well.
For more information on these or other benefits plan limits, please speak with Seubert & Associates, Inc. today.
DOL Proposes New Method for Electronic Delivery of Retirement Plan Disclosures
The U.S. Department of Labor (DOL) published a proposed rule in October that would allow plan administrators to make retirement plan disclosures available on a website.
If the proposal is adopted, plan administrators may continue to use the existing safe harbor for electronic delivery, or to furnish paper documents by hand-delivery or mail.
The proposal would provide a new, optional method where plan administrators who satisfy specified conditions may furnish documents electronically, unless participants affirmatively opt out.
Speak with us to learn more about this proposed rule and how it may affect your organization.
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