On October 25, 2016, the Internal Revenue Service (IRS) announced annual inflation adjustments for more than 50 tax provisions, including an increase in voluntary employee contributions to employer-sponsored healthcare flexible spending arrangements (HFSAs) to $2,600 for plan years beginning in 2017, up from the 2016 limit of $2,550.
The IRS also announced there will be no change in the monthly limits for qualified transportation fringe benefits under § 132(f). For transportation in a commuter highway vehicle and any transit pass, the limit remains at $255. The monthly limit for qualified parking also is $255.
Details of this announcement can be found in the Revenue Procedure 2016-55, which is scheduled to be published in final format in early November.
Originally published by ThinkHR – Read More