IRS Plan Limits for 2015

The IRS released two pieces of separate guidance on inflation adjustments for the 2015 tax year. Revenue Procedure 2014-61 affects more than 40 tax provisions, including higher adjusted limits for health flexible spending account (FSA) contributions, and Revenue Procedure 2014-30 includes higher adjusted limits for health savings account (HSA) contributions and high deductible health plans (HDHPs) minimum deductible and out-of-pocket limits.
In addition, the IRS issued Notice 2014-79 detailing the standard mileage rates for 2015. Effective January 1, 2015, the adjusted rate is 23 cents per mile for medical-related mileage — a decrease of one-half cent from the 2014 rate. As a reminder, the use of a personal automobile to obtain medical care may be a deductible medical expense if primarily for, and essential to, medical care. This mileage is an eligible expense under FSAs and HSAs, and employers may include mileage as an eligible expense under their health reimbursement arrangements (HRAs).
The 2015 plan limits and standard mileage rates are shown below:
    2015 IRS Plan Limits

Plan Year                                                                                  2015/ 2014 / 2013
Health FSA Maximum Annual Salary Reduction 1$2,550/ 1$2,500 /1$2,500
Standard Mileage Rate for Travel to Obtain Medical Care $0.23/ $0.235/ $0.24
Dependent Care Assistance Program
(Unless Married Filing Separately)                              2$5,000/ 2$5,000 /2$5,000
Dependent Care Assistance Program
(If Married Filing Separately)                                      2$2,500/ 2$2,500/ 2$2,500
Transit Passes and Vanpooling (Combined)
Monthly Maximum                                                          $130/ 3$130/ 3$245
Parking Monthly Maximum                                           $250 /$250/ $245
Highly Compensated Employee —
Section 414(q) (Officer Group)                                   $120,000/ $115,000 /$115,000
Key Employee — Section 416(i)                              $170,000/ $170,000/ $165,000
HSA Maximum Annual Contribution Limit
(Self-only)                                                                     4$3,350/ 4$3,300 /4$3,250
HSA Maximum Annual Contribution Limit
(Family)                                                                      4$6,650/ 4$6,550 /4$6,450
HSA Catch-up Contribution Limit                         $1,000/ $1,000/ $1,000
HDHP Minimum Annual Deductible
(Self-only)                                                                   $1,300/ $1,250 /$1,250
HDHP Minimum Annual Deductible (Family) $2,600/ $2,500/ $2,500
HDHP Maximum Out-of-pocket (Self-only) $6,450/ $6,350/ $6,250
HDHP Maximum Out-of-pocket (Family) $12,900 /$12,700/ $12,500
1As a result of the Affordable Care Act (ACA), health flexible spending account (FSA) salary reductions are limited for taxable years beginning on or after January 1, 2013 (the maximum limit may be indexed for inflation each year).
2Under Code Sections 129 and 21, the deemed income of a spouse who is incapable of self-care or a full-time student is $250 per month for one qualifying individual or $500 per month for two or more qualifying individuals.
3The American Taxpayer Relief Act (ATRA) made a retroactive change to the monthly pre-tax limit for eligible transit expenses incurred in 2012, and on January 1, 2013, the 2012 limit increased from $125 to $240 per month. That amount was indexed for inflation in 2013. On January 1, 2014, the expiration of the temporary increase under the ATRA caused the reduced amount.
4An employee is treated as being eligible for the entire calendar year as long as he or she is eligible during the last month of the calendar year. However, failure to maintain eligibility during the “testing period” will result in adverse tax consequences (including an additional excise tax). The testing period begins in December of the year in which the employee becomes eligible and ends the last day of December of the following year.