While inflation remained low through 2016, certain key benefit plan limits have increased slightly for 2017. Last week the IRS officially announced those limit adjustments for various health, retirement and fringe benefit plans. General IRS information about these notices is available here for Health & Welfare plans and here for Retirement plans.
The Health Flexible Spending Account (FSA) employee contribution limit will increase to $2,600. This limit also applies to any Limited-Purpose Health FSA plans. Dependent Care contribution limits are not indexed to inflation, and thus remain unchanged at $5,000 per year per household (or $2,500 if married and filing a separate tax return).
Although announced earlier this year, we will also remind you that Health Savings Account (HSA) contribution limits will increase slightly to $3,400 for self-only coverage and remain unchanged at $6,750 for family coverage.
Qualified Transportation and Parking Benefits will each have monthly reimbursement limits of $255.
Certain Retirement Plan limitations were also modified slightly, but the 401k plan elective deferrals limit will remain unchanged at $18,000. See the chart below for other key retirement plan limits for 2017.