For Many Benefit Limits, 2009 = 2010

Wednesday, November 04, 2009

In mid-October, the IRS went through its annual exercise of updating various definitions and thresholds based on inflation. This year, there was a difference:  the inflation rate has been relatively flat. Therefore, when the IRS issued Revenue Procedure 2009-50 and News Release 2009-094, for the first time in a long time, the major news was that there was no news at all.

For cafeteria plan nondiscrimination testing purposes, the definitions of highly compensated employee ($110,000) and key employee ($160,000) will not change from 2009 to 2010.

For 2010, the monthly Transportation Plan limit for vanpooling, transit passes and parking will remain at $230.