IRS Issues 2013 Adjusted Limits For Long Term Care, MSAs

from Spencer’s Benefits Reports: In Rev. Proc. 2012-41, the Internal Revenue Service provides a variety of inflation-adjusted figures for 2013, including figures for long term care and medical savings accounts (MSAs).

Long term care. For tax years beginning in 2013, the limits under IRC Sec. 213(d)(10) for eligible long term care premiums deductible as “medical care,” based on the insured’s age before the close of the taxable year, are as follows:

  • for those age 40 or younger, the limit is $360 ($350 in 2012);
  • for those older than age 40 but not older than age 50, the limit is $680 ($660);
  • for those older than age 50 but not older than age 60, the limit is $,1360 ($1,310);
  • for those older than age 60 but not older than age 70, the limit is $3,640 ($3,500); and
  • for those older than age 70, the limit is $4,550 ($4,370).

In addition, for 2013, the per-day limit applicable to aggregate payments for per diem-type long term care insurance contracts and amounts received by a chronically ill individual under a life insurance contract under IRC Sec. 7702B(d)(4) is $320 (up from $310 in 2012).

MSAs. For self-only coverage in 2013, a high-deductible health plan (HDHP) is defined in IRC Sec. 220(c)(2)(A) as a plan that has an annual deductible that is not less than $2,150 and not more than $3,200 (up from $2,100 and $3,150 in 2012) and annual out-of-pocket expenses that do not exceed $4,300 (up from $4,200). For family coverage in 2013, an HDHP has an annual deductible that is not less than $4,300 and not more than $6,450 (up from $4,200 and $6,300 in 2012) and annual out-of-pocket expenses that do not exceed $7,850 (up from $7,650).

For more information, contact William Ruane at (202) 622-4920.

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