The Internal Reveneue Service (IRS) has announced the 2017 increase to annual pre-tax limits for both full and limited-purpose health Flexible Spending Arrangements (FSA). The increase will take effect January 1, 2017 for plans years beginning on or after that date.  The annual limit has been rasied from $2,550 to $2,600.

The annual pre-tax limit applies only to the employee salary reduction contributions during the plan year. Not affected by the raise are employer paid contributions if offered.

Click here to read the complete release.