The IRS has released the
2013 inflation-adjusted maximums for certain employee welfare benefit
plans and the dollar amounts used for certain discrimination tests.
For the definition of
"highly compensated employee", which is used in several
welfare plan discrimination tests, the threshold remains at $115,000
when determinations are based on compensation from the preceding
Eligible long-term care
premiums that are treated as medical care expenses cannot exceed:
$360 for individuals age 40 or less; $680 for ages 41 to 50; $1,360
for ages 51 to 60; $3,640 for ages 61 to 70 and $4,550 for those over
The 2013 limit on
contributions to health savings accounts ("HSAs") increases
to $3,250 for a self-only HSA and $6,450 for a family HSA. For 2013,
a high deductible health plan ("HDHP") plan must have a
minimum deductible of $1,250 for self-only coverage, and $2,500 for
family coverage. The maximum out-of-pocket amount for an HDHP
(including deductibles, co-payments and other amounts, not including
premiums) cannot exceed $6,250 for self-only coverage and $12,500 for
Employees' pre-tax employee
contributions to health care flexible spending account plans are
limited to $2,500 per year as of the first day of the first plan year
beginning on or after January 1, 2013.
The maximum tax-exempt
benefit from a dependent care assistance plan remains at $5,000, as
this amount is not indexed to inflation.
The IRS has not yet
announced the maximums for adoption assistance plans, qualified
parking expense reimbursement plans or qualified transportation
expense reimbursement plans.