SUBSCRIBE TO PRM TODAY

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.