IRS Announces 2015 Changes – Increases to HCFSA, Parking and Transit Remain the Same
While IRS Revenue Procedure 2014-61 contains a great deal of information (in its 22 pages), the most pertinent information to health and welfare benefit plans is as follows:
- Increase to the maximum deferral for a HCFSA (Health Care Flexible Spending Account) is now $2,550
Also, of note:
- Cafeteria Plans – For the taxable years beginning in 2015, the dollar limitation under §125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $2,550
- Qualified Transportation Fringe Benefit. For taxable years beginning in 2015, the monthly limitation under § 132(f)(2)(A) regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $130. The monthly limitation under § 132(f)(2)(B) regarding the fringe benefit exclusion amount for qualified parking is $250.
If you’re looking for good summaries of new tax brackets, etc., you can’t do much better than the update from Forbes, linked below.
- IRS Revenue Procedure 2014-61
- Forbes Article: IRS Announces 2015 Tax Brackets, etc.