IRS Announces 2015 Adjustments for Certain Benefit Items
November 10, 2014
In Revenue Procedure 2014-61, the IRS set forth a variety of 2015 adjusted tax limits. Among other things, the notice addresses benefits related limits for health flexible spending accounts (FSAs), adoption assistance, and qualified transportation benefits.
Health Flexible Spending Account (FSA) – 2015 annual limitation of $2,550
Health care reform imposed a $2,500 limit on annual salary reduction contributions to health FSAs offered under Section 125 (Cafeteria) plans, effective for plan years beginning after December 31, 2012.The $2,500 amount is indexed for cost-of-living adjustments for plan years beginning after December 31, 2013, but was not changed for 2014. For 2015, the annual limitation on salary reductions is increased to $2,550.
Qualified Transportation Fringe Benefit – $130 for transit pass / $250 for qualified parking
- Monthly limitation for commuter highway vehicle or transit pass is $130, which is unchanged
- Monthly limitation for qualified parking provided by an employer is $250, which is unchanged
Adoption Assistance – $13,400 for adoption of a child
Amounts paid by an employer for “qualified adoption expenses” incurred in connection with the adoption of a child are excludable from an employee’s gross income, if furnished pursuant to an “adoption assistance program” of the employer. The limit on such amount has increased from $13,190 for 2014 to $13,400 for 2015.
Summary
A summary release of the various 2015 amount limits may be found here. The full text of the notice may be found here.
As always, should you have any questions, please contact your
Parker, Smith & Feek Benefits Team.
We strive for the most accurate and up-to-date information. Neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the Understanding that the publisher is not engaged in rendering legal, accounting or other professional advice or services. Readers should always seek professional advice before entering into any commitments.
The views and opinions expressed within are those of the author(s) and do not necessarily reflect the official policy or position of Parker, Smith & Feek. While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it.
Twitter
LinkedIn
Facebook
YouTube