Updates for 2012
Monday, 21 November 2011 11:47
Flexible Spending Account Healthcare Reimbursement Maximum will be capped at $2,500
Healthcare reform legislation says that in 2013, the healthcare reimbursement portion of a Flexible Spending Account can only allow a maximum deferral of $2,500 per year or less.
Beginning with plans that renew after January 1, 2012, Chard Snyder will work with you to make any changes to your Flexible Spending Account limits to comply with these regulations. If your plan already has a limit of $2,500 or lower for healthcare reimbursement, no update will be needed.
IRS Announces Updates to Transportation and Parking Plan Maximums
Chard Snyder's Transportation and Parking Plan allows participants to pay for their mass transit, vanpooling and parking expenses with pre-tax money. Each year the IRS evaluates the maximum allowed to be deferred and sets the plan limits.
For 2012 the maximums will be:
- Qualified Parking - the monthly maximum for qualified parking benefits will be $240, which is a $10 increase from 2011.
- Transit Passes and Vanpooling - the monthly maximum will decrease to $125.
A provision in the federal stimulus package had temporarily increased the maximum allowed for Transit Passes and Vanpooling to $230 for a period of time ending 12/31/2011. While no legislative changes or extensions appear to be planned, if this increase is extended we will send an additional notification.
