Following the enactment of the American Taxpayer Relief Act of 2012, the IRS announced the 2013 cost-of-living adjustments for adoption assistance and transportation fringe benefit plans.

Adoption Assistance

The exclusion for employer-provided adoption assistance will increase to $12,970 per child in 2013. In 2013, the exclusion begins to phase out for taxpayers with adjusted gross income above $194,580 and is eliminated for taxpayers with adjusted gross income of $234,580 or more.

Parking and Transportation

In 2013, the limit on the monthly amount that can be excluded from income for qualified parking expenses, transit passes and/or transportation in a commuter highway vehicle under a qualified transportation fringe benefit plan has increased to $245. 

Health Savings Accounts

The maximum annual contribution to a health savings account will increase in 2013.  For single coverage, the limit is $3,250 (or the annual deductible, if less).  For family coverage, the limit is $6,450 (or the annual deductible, if less).  The additional “catch-up” contribution that can be made by individuals age 55 or older is fixed by statute at $1,000 for 2013 and beyond.  The minimum deductible required to qualify as a high deductible health plan for purposes of the health savings account rules has increased to $1,250 for single coverage, and $2,500 for family coverage in 2013.  The corresponding limits on HDHP out-of-pocket maximums will increase to $6,250 for single coverage, and $12,500 for family coverage in 2013.

For further details on other 2013 benefit plan limits, including a printable chart with the most significant limits, see our recent Benefits Update.