The annual limit on Health Flexible Spending Account (FSA) contributions is adjusted each year for inflation. On October 25, 2016, the IRS released Revenue Procedure 2016-55, confirming a $50 increase for 2017 in the health FSA salary reduction contribution limit to $2,600.
The Dependent Care FSA contribution limit remains unchanged from 2016. The monthly maximum benefit for Qualified Parking & Transit expenses also stays the same for 2017.
Thank you for your attention to this important compliance E-Alert. Please do not hesitate to reach out with any questions or concerns.