Update 12/17/2010 to original post on 12/9/2010: 

The bill which would extend the Bush-era tax cuts has been sent to the President for signature.  Assuming that the bill is signed by the President, there are two features to the bill which will impact your 2011 benefits:

The Commuter Choice Mass-Transit benefit contribution/expense limit will be $230 per month for 2011.  The Mass-Transit benefit was limited to $120 per month until the 2009 ARRA legislation which temporarily increased the limit to $230.  That temporary increase was due to "sunset" at the end of 2010 but the new law will extend the increase for another year (sunset 12/31/2011). 

The Dependent Day Care "Tax Credit" eligible considered expense limit will remain at $3000 for one child/dependent in day care and $6000 for two or more dependents in day care.  The limits for the DCAP contributions remain unchanged at $2,500 per if you are married filing separate returns and $5,000 if you are married filing a joint return or single/head of household.

Note:  We advised our clients/participants to enroll for what they wanted in Mass-Transit benefits for 2011 and we would let them know if their enrollment was in excess of the new 2011 limits.  It looks like that gamble has paid off!

We will be updating the Commuter Choice Brochure online (again!) after the bill is signed into law and will distribute the 2011 Commuter Choice Benefit Summaries (customized for each client) within the next two weeks.

The following is a chart of common Benefit Plan limits and rates.

Description	Plan Year
	2011	2010
Flex Plans
Medical Flex Spending Account:	By Employer Plan Design until 2013 when it will be limited to the lesser of a) the Employer Plan Design or b) $2500/year (subject to annual cost of living adjustments).
Dependent "Day Care" (DCAP):	$5000 if head-of-household or married filing a joint return; $2500 if married filing separate returns.
Commuter Choice/Qualified Transportation
Mass-Transit/Vanpool	$230/month	$230/month
Parking	$230/month	$230/month
Health Savings Accounts
Maximum Contribution - Individual Coverage	$3,050	$3,050
Maximum Contribution - Family Coverage	$6,150	$6,150
HSA Age 55+ "Catch up"	$1,000	$1,000
401(k) Plans
401(k) Elective Deferral Limit	$16,500	$16,500
401(k) Age 50+ "Catch up"	$5,500	$5,500
For Discrimination Testing Purposes
Key Employee Definition	$160,000	$160,000
Highly Compensated Definition	$110,000	$110,000
Payroll Taxes
Social Security Wage Base (6.2% up to)	$106,800	$106,800
Medicare Tax Wage Base (1.45% up to)	Unlimited
California (SDI) Disability (1.1% up to)	$93,316	$90,669
Eligible Medical Expenses
Medical Travel Expenses	$.19/mile	$.165/mile

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