IRS Increases Flexible Spending Limits

Written by benefitexpress | October 26, 2016

2016 Increase for FSA

The IRS has just announced an increase in the limits for Flex Spending Accounts among other key benefit limitations. The limit on employee contributions to employer-sponsored FSAs has increased to $2,600 per year for 2017. This is a $50 increase over last year’s limit of $2,550.

Many other voluntary benefit limits were also increased in the announcements. This year, the Long Term Care Insurance deductible increased faster than the national inflation rate. The new limits are:

Age Attained Before End of Tax Year

Premium Limit

40 and younger

$410

41-50

$770

51-60

$1,530

61-70

$4,090

71 and older

$5,110

Other benefit increases include transit (up to $255) and adoption assistance ($13,570 for a child with special needs). The full text of the IRS increases is available here.

Want to stay current with legislative updates? Subscribe to our emails!

Topics: Legislative Update, Health & Wellness