IRS Issues 2017 Health FSA Limit Increase
Marshall & Sterling E-Alerts - Keeping You in the Know
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.
|Flexible Spending Accounts (FSAs)|
|Health FSA Max Election||$2,600||$2,500|
|Dependent Care FSA Max Election||$5,000||$5,000|
|Transportation Fringe Benefit|
Thank you for your attention to this important compliance E-Alert. Please do not hesitate to reach out with any questions or concerns.