Keenan Briefings

Briefings

2020 Benefit Limits for Health & Welfare Plans

November 01, 2019

UPDATED TO REFLECT NEWLY RELEASED INFORMATION

Every year, the U.S. Government sets new limits for various benefit programs to reflect inflation and changes in the law. Following are the limits announced for 2020. Employers should review their benefit plans to ensure they reflect these new limits.

Retirement Plans

2019

2020

Limits On Benefits And Contributions:

  • Defined benefit plan, basic limit
  • Defined contribution plan, basic limit
  • 401(k) and 403(b) plans, elective deferrals
  • 457(b) plans, elective deferrals
  • SIMPLE plans, elective deferrals
  • Annual compensation limit

 
$225,000
$56,000
$19,000
$19,000
$13,000
$280,000

 
$230,000
$57,000
$19,500
$19,500
$13,500
$285,000

Catch-Up Contributions

  • 401(k), 403(b) or governmental 457 plans
  • SIMPLE plans

 
$6,000
$3,000

 
$6,500
$3,000

"Highly Compensated" Definition

$125,000

$130,000

"Officer" Or "Key Employee" Definition

$180,000

$185,000

 

Health Savings Accounts

2019

2020

Contributions

  • Individual
  • Family

 
$3,500
$7,000

 
$3,550
$7,100

Minimum Annual Deductible

  • Self-Only
  • Family

 
$1,350
$2,700

 
$1,400
$2,800

Out-of-Pocket Maximums (OOPM)

  • Self-Only
  • Family

$6,750
$13,500

$6,900
$13,800

Post-55 Catch-Up Limit

$1,000

$1,000

 

Non-HSA Qualified Plans

2019

2020

Out of Pocket Maximums (OOPM)

  • Self Only
  • Other than sel-only coverage 

  

$7,99
$15,800

  

$8,150
$16,300

 

Medicare

2019

2020

Part A (Hospital Insurance):

  • Inpatient deductible
  • Daily Coinsurance, Days 61-90
  • Daily Coinsurance, Days 91-15
    Lifetime reserve
  • Daily Coinsuranc, Skilled Nursing Facility1

 
$1,346
$341
$682

$170.50

$1,408
$352
$704

$176

Part B (Supplementary Medical Insurance):

  • Monthly Premium
  • Deductible

 
$135.50
$185

 
$144.60
$198

Part D (Prescription Drug Benefit):

  • Base Part D Premium 
  • Maximum Annual Deductible
  • Initial Coverage Limit
  • Annual Out-Of-Pocket Threshold
  • Minimum Copayment For Costs Above The Annual Out-Of_Pocket Threshold 

 

$33.19
$415
$3,820
$5,100
$3.40 generic
$8.40 other

 

$32.74
$435
$4,020
$6,350
$3.60 generic
$8.95 other

 

Medical Savings Account

2019

2020

Individual Deductible Range
Individual Out-Of-Pocket Maximum
Family Deductible Range
Family Out-Of-Pocket Maximum

 
$2,350 - $3,500
$4,650
$4,650 - $7,000
$8,550

 
$2,350 - $3,550
$4,750
$4,750 - $7,100
$8,650

 

Long Term Care Insurance Deductible Premiums

2019

2020

Age:

  • 40 or less
  • 41-50
  • 51-60
  • 61-70
  • Over 70  

 
$420
$790
$1,580
$4,220
$5,270

 
$430
$810
$1,630
$4,350
$5,430

 

Flexible Spending Accounts

2019

2020

Dependent Care
Medical

 
$5,000
$2,700

 
$5,000
$2,750

 

Qualified Transportation Fringe Benefit

2019

2020

Parking
Transit Pass / Commuter Vehicle

 
$265
$265

 
$270
$270

 

Control Employee Definition for Commuting Valuation

2019

2020

Officer Compensation
Employee Compensation

 
$110,000
$225,000

 
$115,000
$230,000

 

Affordable Care Act (ACA)

2019

2020

4980H(a) Penalty

$2,500

$2,570

4980H(b) Penalty

$3,750

$3,860

FPL Affordability Safe Harbors

  • FLP for Single individual
  • Maximum monthly contribution

2
$12,140
$99.75

2
$12,490
$101.79

Affordability

  • Affordability threshold under 4980H affordability safe harbors
  • Affordability threshold for eligibility of premium tax credits
  • Affordability threshold under Individual Mandate 


9.86%
9.86%
N/A4


9.78%
9.78%
N/A5

 

1 For days 21-100. Days 1-20 is $0 for each benefit period.
2 Use 2018 poverty guidelines to determine affordability.
3 Use 2019 poverty guidelines to determine affordability.
4 No individual mandate in 2019.
5 No federal individual mandate in 2020. However, California has a state-imposed individual mandate to obtain and maintain minimum essential coverage under a health insurance plan effective January 1, 2020. Refer to our November 1, 2019 Briefing for details.


Keenan & Associates is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Clients are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the clients’ business activities.