The EY Tax Guide 2014

IRS releases fringe benefit inflation adjustments for 2014

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Reference: Chapter 47, Planning ahead for 2014 and beyond

In Revenue Procedure 2013-35, the IRS published the inflation adjustments that will apply to various fringe benefits in 2014.

2014 Medical Savings Account (MSA) limits

Summarized below are the 2014 limits that apply to MSAs.

Provision Self-only coverage Family coverage
Annual deductible as defined in IRC Section 220(c)(2)(A) Not less than $2,200 and not more than $3,250 Not less than $4,350 and not more than $6,550
Annual out-of-pocket (other than for premiums) Not to exceed $4,350 Not to exceed $8,000

Adoption assistance

The limit on qualified adoption assistance for 2014 is $13,190, up from $12,970 in 2013.

Health flexible spending accounts

The 2014 annual limit on the amount of pretax contributions employees can make toward their health flexible spending account under a cafeteria plan is $2,500, unchanged from 2013.

Transportation fringe benefits

The 2014 monthly limit on parking benefits is $250, up from $245 in 2013.
The 2014 aggregate monthly limit for transportation in a commuter highway vehicle and any transit pass is $130, down from $245 in 2013. Note that should Congress extend the provision that gives parity between parking and commuter benefits, the 2014 limit would be adjusted to $250.