2014 Pretax Limits Released

2014 Pretax Limits Released

Each year the IRS announces the new limits for various aspects of employee benefits plans. Please make note of these 2014 limits. Highly Compensated Salary 2014: $115,000 (unchanged from 2013) Transportation Benefit Parking 2014: $250/month 2013: $245/month Transit 2014: $130/month 2013: $245/month NOTE: Unless further legislation is passed prior to year end, the pretax deduction will decrease to $130 per month for public transportation and vanpooling. The pretax deduction for parking is scheduled to increase to $250. The American Taxpayer Relief Act of 2012 was signed into law on January 2, 2013. This important legislation re-established parity between the parking and transit benefits, which had been in place since 2009, to provide commuters who choose public transportation the same tax savings as those who drive to work. Meanwhile, this provision expires on December 31, 2013. Unless Congress acts this year to establish permanent parity—or at minimum temporarily extends the current monthly amount—the benefit’s pretax transit portion will once again plunge (on January 1) to about half of that for the parking benefit, thereby effectively increasing the cost of riding public transportation. Medical Out-of-Pocket Expenses 2014: $2,500 (unchanged from 2013) NOTE: Employee salary reductions for the Plan Year are limited. Employer contributions do not count toward this limit. Dependent Care Expenses 2014: $5,000 (unchanged from 2013) Qualified Long-Term Care 40 or younger—2014: $370 (2013: $360) 41-50—2014: $700 (2013: $680) 51-60—2014: $1,400 (2013: $1,360) 61-70—2014: $3,720 (2013: $3,640) 71 and older—2014: $4,660 (2013: $4,550) Social Security Taxable Wage Base 2014: $117,000 2013: $113,700 Medical Mileage 2014: To be announced in December 2013: 24 cents HSA Limits: HSA Annual Contribution Levels Individual—2014:...