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December 7, 2010

2011 Limits: Qualified Transportation and Medicare Parts A and B

Qualified Transportation Expenses

To date, the cost of living adjustments applicable to transportation expenses reimbursed by an employer under a qualified transportation program (IRC § 132(f)), have not been issued. The American Recovery and Reinvestment Tax Act of 2009 (enacted 2/17/09), amended the mass transit benefit to make it the same as qualified parking ($230).  This provision will expire December 31, 2010.  Thus, beginning January 1, 2011, the mass transit benefit will revert to $120, unless the law is changed, or a cost of living adjustment is issued.

 

2010

2011

Commuter Highway Vehicle and Any Transit Pass

$230

$120

Qualified Parking

$230

$230

Qualified Bicycle Fringe Benefit.  The limit for reimbursement of qualified bicycle expenses is not tied to a cost of living adjustment; thus, the $20 per month/$240 annual limit remains the same for 2011.

2011 Medicare Parts A and B: Premium and Deductible Rates

2011

Part A

 

Premium

  • No monthly Part A premium for those with 40+ quarters of Medicare-covered employment.
  • $248.00 per month for those having 30-39 quarters of Medicare-covered employment.
  • $450.00 per month for people who are not otherwise eligible for premium-free hospital insurance and <30 quarters of Medicare-covered employment.

Deductible

$1,132

Part B Premium and Deductible

For 2011, the standard Medicare Part B monthly premium will be $115.40; the Part B deductible will be $162.

High-income Surcharge.  The CMS news release (link below) also includes a schedule for Medicare Part B premium adjustments, based on income and tax filing status.  In addition, the Patient Protection and Affordable Care Act, enacted earlier this year, modifies the Medicare Part D surcharge amounts on drug plan premium for high-income earners. 

Source:  CMS’ News Release: CMS Announces Medicare Premium and Deductible Rates for 2011).

 

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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