The IRS announced on Wednesday, November 6, 2019 that limits for 403(b) retirement plans, healthcare flexible spending accounts, and pretax commuter accounts will increase in 2020.

403(b) and similar retirement plan limits will increase to $19,500, from $19,000. Individuals age 50 and over may contribute an additional $6,500, up from $6,000, for a total of $26,000. Individuals at Illinois Tech who elected to contribute to the IRS maximum in 2019 will see their elective deferral rate updated in January 2020 and do not need to take action. Individuals who wish to elect the IRS maximum in 2020 and have not previously done so should complete a new Salary Reduction Agreement Form, found on the HR Portal Forms page, and return it to Human Resources.

The healthcare flexible spending account (HCFSA) limit increases from $2,700 to $2,750 in 2020. Individuals who elected the $2,700 prior to the new limit being announced may update their election prior to the close of open enrollment on Friday, November 15.

Pretax parking and transit elections increase from $265 per month to $270 per month beginning in January 2020. Those who place orders through WageWorks will see this limit increase beginning with the January ordering window, which closes on December 10, 2019. As a reminder, those to park daily at Mies Campus and pay for their parking pass via payroll deductions should NOT use WageWorks for pretax parking.

If you have any questions, please contact Viktoria Rill at x73353 or vrill@iit.edu.