FLEX News & Compliance

News

Compliance - IRS Publications

Compliance Notifications

Earned Income Tax Credit

By participating in a cafeteria plan, the participant will be lowering their income for the Earned Income Tax Credit (EITC). Check the new limits in IRS Publication 596 "Earned Income Credit" and for more information about this tax credit.

Social Security and Medicare Wage Base

For 2020, the Social Security wage base will increase to $136,800. The Social Security rate of 6.2% is applied to wages up to the maximum taxable amount for the year; the Medicare portion of 1.45% applies to all wages.

401(k) Plans

In 2020, the maximum for elective deferrals has increased to $19,500 (from $19,000 in 2019). The catch-up contribution for those 50 or older will increase to $6,500 (from $6,000 in 2019). That means if you are age 50 or over during 2019 taxable year, you may generally defer up to $26,000 into your 401(k) plan.


IRS Long-Term Care Maximum

2019 2020
For a qualified long-term care insurance policy, the maximum non-taxable daily amount. $370/day $380/day

IRS Publications/Notices