October 4, 2006

Projected 2007 Cost of Living Adjustments for Certain Benefit Plans

Following are 2007 projected cost of living increases for HSAs, MSAs, long term care and qualified transportation.  These are based on the Consumer Price Index (CPI) recently issued.  Important to note, these are not the official figures from the IRS; they are projections.  As soon as the official figures have been issued, we will provide them to you.

Health Savings Accounts


Projected 2007





HDHP Annual Deductible







Out-of-Pocket Expenses







Contribution Limits

  Lesser of:

  • Annual deductible ($1,100+); or
  • $2,850

  Lesser of:

  • Annual deductible ($2,200+); or
  • $5,650

Archer Medical Savings Accounts


Projected 2007





HDHP Annual Deductible



Between $1,900 and $2,850


Between $3,750 and $5,650


Out-of-Pocket Expenses






Long-Term Care Premiums


Age at end of tax year


Projected 2007 Premium Limit


$ 290

>40 but <50

$ 550

>50 but <60

$ 1,100

>60 but <70

$ 2,950


$ 3,680

Transportation Benefits





Projected 2007 Limit

Commuter Highway Vehicle and Any Transit Pass





                                    Qualified Parking





The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations.

As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this Benefit Beat is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.


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