IRS Increases Flexible Spending Limits

Written by benefitexpress | October 26, 2016

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.

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Topics: Legislative Update, Health & Wellness