Today the IRS officially announced under, Revenue Procedure 2019-44 the 2020 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules, and other tax changes. Included in the announcement is the inflation adjusted 2020 limits for Parking and Transit account limits under an IRC §132 Transportation Plan.
For Transportation Plans, Parking and Transit limits for 2020 each increase to $270 per month.
The limits under a Transportation plan will include any employer contribution towards the Parking or Transit Benefits. Therefore, any employer contribution reduces the amount an employee can elect as a pre-tax amount for their Parking or Transit Benefits.
For a complete review of the updates to the 2020 tax provisions refer to Revenue Procedure 2019-44.
Quick Reference Guide
For your convenience, Employee Benefits Corporation has prepared a quick reference guide for the current and new plan limits. Please click here to access this guide.