V11.06: Rates & Limits - Medical Mileage Update

The IRS has announced a change in the mileage rates for the 2nd half of 2011. 

Medical Mileage Reimbursement Rate
Increased from $.19/mile (1/2011 to 6/2011) to  $.235/mile (7/2011 to 12/2011)

Business Travel Mileage Reimbursement Rate
Increased from $.51/mile (1/2011 to 6/2011) to $.555.mile (7/2011 to 12/2011)

The IRS recently announced that the Health Savings Account contribution limits will increase from (Individual)  $3,050 in 2011 to $3,100 in 2012 and (Family) $6,150 in 2011 to $6,250 in 2012.

The Commuter Choice Mass-Transit benefit contribution/expense limit is $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 it was extended  for another year (sunset 12/31/2011).  Unless extended again, the Mass-Transit benefit limit will revert to $120 per month (or as adjusted for inflation) effective January 1, 2012.

The Dependent Day Care "Tax Credit" eligible considered expense limit remains at $3,000 for one child/dependent in day care and $6,000 for two or more dependents in day care for 2011 but will return to $2,400/$4,800 in 2012 unless the higher limits are extended by Congress.  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.

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
($3,100 for 2012)

$3,050

Maximum Contribution - Family Coverage

$6,150
($6,250 for 2012)

$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

07/11 to 12/11
$.235/mile

01/11 to 06/11 $.19/mile

$.165/mile


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