IRS Announces 2018 Limits for Health FSAs and Transit Benefits
On October 19, 2017, 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 $2,650 for plan years beginning in 2018, up from the 2017 limit of $2,600.
The IRS also announced an increase in the 2018 monthly limits for qualified transportation fringe benefits under § 132(f). For transportation in a commuter highway vehicle and any transit pass, the limit will be $260 (up from $255 this year). The monthly limit for qualified parking also will be $260.
Details of this announcement can be found in the Revenue Procedure 2017-58, which is scheduled to be published in final format in early November.