IRS Announces 2017 Health FSA and Commuter Plan Limits
On October 26, 2016, the IRS announced the 2017 annual inflation adjustments, which included increased limits for Health Flexible Spending Accounts (FSAs) under an IRC §125 cafeteria plan. The Parking and Transit limits for 2017 remain the same.
Details are included in the IRS Revenue Procedure 2016-55:
- 2017 Maximum Health FSA Salary Reduction Contribution Increased to $2,600
- Qualified Commuter Parking and Mass Transit Pass Limits Remain at $255
The adjusted health FSA pre-tax salary reduction limit is per employee, per employer, per plan year starting January 1, 2017.
For a complete review of the updates to the 2017 tax provisions, please refer to Revenue Procedure 2016-55.