The Internal Revenue Service has announced various 2014 inflation adjustments for health and welfare plans. The items related to Health and Welfare benefit plans include the following dollar amounts.
Health FSAs: The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) remains unchanged at $2,500.
Qualified Transportation Fringe Benefit: The monthly limitation regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $130. The monthly limitation regarding the fringe benefit exclusion amount for qualified parking is $250.
Medical Savings Accounts: The term “high deductible health plan” means, for self-only coverage, a health plan that has an annual deductible that is not less than $2,200 (self) / $4,350 (family) and not more than $3,250 (self) / $6,550 (family) and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $4,350 (self) / $8,000 (family).
Small Employer Health Insurance Credit: The maximum credit is phased out based on the employer’s number of full-time equivalent employees in excess of 10 and the employer’s average annual wages in excess of $25,400 for tax year 2014, up from $25,000 for 2013.
Details on these inflation adjustments and others not listed here can be found in Revenue Procedure 2013-35.
