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.
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