In Rev Proc 2006-53, the IRS released several cost of living adjustments for various benefits. Following are amounts applicable to tax years beginning in 2007:
Health Savings Accounts
For 2007, the annual deductible amounts for a high deductible health plan (HDHP) used in conjunction with a health savings account (HSA), and limits for out-of-pocket expenses and contributions are:
| | Individual / Self-only | Family |
| HDHP Annual Deductible | $1,100 | $2,200 |
| Out-of-Pocket Expenses | $5,550 | $11,000 |
| Contribution Limits | Lesser of: - Annual deductible ($1,100+); or
- $2,850
| Lesser of: - Annual deductible ($2,200+); or
- $5,650
|
The special additional contribution for individuals aged 55 or older increases from $700 to $800.
Archer Medical Savings Accounts
The annual deductible limit of a HDHP and out-of-pocket expense limit in an Archer medical savings account for 2007 are:
| | Single | Family |
| HDHP Annual Deductible | Between $1,900 and $2,850 | Between $3,750 and $5,650 |
| Out-of-Pocket Expenses | $3,750 | $6,900 |
Transportation Benefits
Transportation expenses reimbursed by an employer under a qualified transportation program (IRC §132(f)) are:
| | 2006 | 2007 |
| Commuter Highway Vehicle and Any TransitPass | $105 | $110 |
| Qualified Parking | $205 | $215 |
Long-Term Care Premiums
The IRS limitations relating to eligible long-term care premiums includible as medical care, as defined in IRC §213(d).
| Age at end of tax year | Premium Limit |
| <40 | $ 290 |
| >40 but <50 | $ 550 |
| >50 but <60 | $ 1,100 |
| >60 but <70 | $ 2,950 |
| >70 | $ 3,680 |
Adoption Assistance Programs
For purposes of adoption assistance programs (IRC §137), the exclusion limit and AGI phase-out limits for 2007 are:
| | 2006 | 2007 |
| Exclusion Limit | $10,960 | $11,390 |
| AGI Phase-out Limits | Between $164,410 and $204,410 | Between $170,820 and $210,820 |
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.