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 |
$3,500
$7,000 |
$3,550
$7,100 |
| Minimum Annual Deductible |
$1,350
$2,700 |
$1,400
$2,800 |
| Out-of-Pocket Maximums (OOPM) | $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.