The IRS previously announced increases to its annual contribution limitations to various health savings accounts, flexible spending accounts and more. This article serves as a brief reminder regarding these increased contributions for 2015. We invite you and your employees to take advantage of these opportunities as savings to better health for your person and bank account.
- Flexible Spending Account (FSA): The annual dollar limit for Flexible Spending Account (FSA) contributions increases to $2,550.
- The annual limit for dependent care remains unchanged at $5,000.
- Health Savings Account (HSA): The Health Savings Account (HSA) contribution limits for 2015 is $3,350 for an individual and $6,650 for a family.
- The catch-up contribution limit remains unchanged at $1,000.
- High Deductible Health Plan (HDHP): The IRS limits for high-deductible health plan (HDHP) maximum out-of-pocket amounts for 2015 are $6,450 for single and $12,900 for family.
- Under the Affordable Care Act (ACA), the maximum out-of-pocket limits for a High Deductible Health Plan (HDHP) are $6,600 for single and $13,200 for family.
- Please note that a plan has to comply with the IRS limits even though the ACA may permit them to be higher.
- Maximum Out-of-Pocket (MOOP): Limits apply to both medical and drug expenses toward the annual in-network maximum out-of-pocket (MOOP), which cannot exceed $6,600 for individual and $13,200 for a family during a benefit period.
- Previously, out-of-pocket expenses for drugs were unlimited and excluded from the 2014 regulated MOOP. The 2015 ACA requirement to apply both medical and drug expenses to the in-network limits provides a better benefit for members.
- Individual and Family Deductibles: Under the ACA, the deductible, while part of the out-of-pocket expense of the participant, has its own limit. The maximum amount most plans can require participants to pay for deductibles increases to $2,050 for individuals and $4,100 for family.
- Transitional Reinsurance: The ACA transitional reinsurance drops to $44 per enrollee, but the Patient-Centered Outcomes Research Institute (PCORI) fee increases to $2.08 per covered life.
- Transit Benefits: Employees can also deduct commuting/transit costs from their paychecks, tax free, through an employer benefit program. The monthly limit is $130 for transit passes and $250/month for parking fees.
- Adoption Assistance: The adoption assistance tax credit rises to $13,400, and the range for phasing out the credit now starts at $201,010.
CHART: for an excellent 2014 to 2015 comparison chart containing this information, please see our May 2014 blog announcing this information:
Do You Know the Details of HSAs?
Download this two page information sheet from our partner Unum, which discusses the HSA model, CDHPs, HSA plan specifications and more.
Should you need assistance disseminating this information to your employees in a clear and concise manner, please seek the assistance of a seasoned FosterThomas Employee Benefits Specialist.
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