2017 Health FSA Limit Increases to $2600
On October 25, the Internal Revenue Service announced the tax year 2017 annual inflation adjustments for more than 50 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2016-55 provides details about these annual adjustments.
Included in the IRS announcement are changes impacting Health FSAs. Specifically, the annual Health FSA limit will increase to $2600 for tax year 2017. (A $50 increase from the prior tax year.)
Note the $2600 Health FSA limit applies to employee salary reduction contributions. Employer contributions cannot exceed $500 per plan year for the health FSA to maintain excepted benefit status.
If you have any questions about this information please contact your IPS Advisors consultant or email firstname.lastname@example.org.
The information provided is for educational purposes only. This information is from sources we believe to be reliable, but we cannot guarantee or represent that it is accurate or complete. The opinions are those of the writer, and the opinions and information presented are subject to change without notice.