2013 Cost-of-Living Adjustments (COLAs)

11/06/2012

The IRS has released the 2013 cost-of-living adjustments (COLAs) for a wide variety of tax benefit limits on employer-sponsored welfare plans. Some dollar limits from 2012 will change but some will remain the same:

 

Employee Benefit Plan Limits 2013 2012
Health Savings Accounts (HSA)
Annual Contribution Limits
Single $3,250 $3,100
Family $6,450 $6,250
Catch-up Contributions (individual age 55 or older) $1,000 $1,000
Minimum HSA Compatible Health Plan Deductible
Single $1,250 $1,200
Family $2,500 $2,400
Maximum Out-Of-Pocket Expenses
Single $6,250 $6,050
Family $12,500 $12,100
Health Flexible Spending Account (FSA) max dollar limit $2,500 No Limit
Highly Compensated Employee Definition $115,000 $115,000
Key Employee Definition $165,000 $165,000
 
Transportation Fringe Benefits
Qualified Parking $240 $240
Transit $125 $125

Clients should update their employee communications to reflect these new limits, including their open enrollment pieces and summary plan descriptions.

To read more, please visit: http://www.irs.gov/pub/irs-drop/rp-12-26.pdf or herehttp://www.irs.gov/pub/irs-news/IR-12-077.pdf