Adoption assistance expenses that DO qualify for reimbursement

• Home study and application fees
• Reasonable and necessary legal adoption fees
• Court costs
• Attorney fees
• Agency fees

• Medical services and counseling
• Travel and lodging fees
• Other expenses which are directly related to, and the principal purpose of which is for, the legal adoption of an eligible child

Adoption assistance expenses that DO NOT qualify:

• Adoption of a child belonging to the participant's spouse
• Illegal adoption fees
• Surrogate parenting arrangements
• Legal adoption expenses for which another deduction or credit is allowed

Income limitations

The credit is phased out for participants with a household modified adjusted gross income over $194,580 in 2013, and no credit is allowed to participants with a household modified adjusted gross income of $234,580 in 2013.

Maximum payments allowed by the IRS

The limit for 2013 is $12,970. If you expect to pay more than the annual limit for any single adoption attempt, you might want to take advantage of both a tax credit on your Form 1040 and let the plan pay additional adoption expenses.

Note: Although you won't save FICA on contributions to the Adoption Assistance Plan, you will save federal and state tax (where applicable). Consult your tax advisor for details.

Limitation on qualified expense

Your plan may restrict the reimbursement of one or more of these items. Check with your plan administrator. The total amount of all qualified expenses paid may not exceed the maximum allowed under the plan. Please review your Summary Plan Description or see your plan administrator for more information.

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