Via Rev. Proc. 2014-61, the IRS today announced 2015 COLA Increases for more than 40 tax provisions, including:
- SECTION 125 HEALTH FLEXIBLE SPENDING ACCOUNTS (FSAs) – The annual cap increases to $2,550 per employee.
- SECTION 132 PARKING AND TRANSIT ACCOUNTS – The monthly limitation increases to $250 for Parking and remains at $130 for Transit.
- SECTION 137 ADOPTION ASSISTANCE PROGRAMS – The amount that can be excluded from an employee’s gross income for the adoption of a child increases to $13,400. This begins to phase out at a modified AGI of $201,010.
Additionally, on Oct. 23 the IRS announced adjustments to 2015 limits for pension plans and other retirement-related items, including:
- 401K, 403(b), 457 ELECTIVE DEFERRALS – The annual elective deferral (contribution) limit for participants in 401k, 403(b) and most 457 plans increases to $18,000.
- HIGHLY COMPENSATED EMPLOYEES – The limitation used in the definition of highly compensated employee (HCE) under Section 414(q)(1)(B) increases to $120,000.
Please contact your Business Relationship Manager with any questions or concerns.