IRS Announces 2018 Increases to Flex Benefit Contribution Limits

Breaking News

LEAWOOD, KS., (October 20, 2017) – The IRS has announced the 2018 contribution maximums for Flexible Spending Account (FSA) plans in the newly released Revenue Procedure 2017-58. Contribution limits increased for the Health FSA, Commuter Benefits and Adoption Assistance program, while limits for the Dependent Care FSA remained unchanged.

 

Health Flexible Spending Account

The Health FSA, which provides employees the ability to set aside money on pre-tax basis to pay for eligible medical, dental, and vision expenses will have an increase to its contribution maximum from $2,600 to $2,650 for 2018. The new contribution limit will also apply to the Limited Purpose FSA which reimburses eligible dental and vision expenses.

 

Commuter Benefits

Commuter Benefits help employees pay for certain parking, mass transit and/or vanpooling expenses with pre-tax dollars. The contribution limits for this account will increase from $255 to $260 for 2018.

 

Adoption Assistance

The Adoption Assistance FSA helps employees pay eligible adoption expenses such as agency fees and court costs by contributing to the account with pre-tax money from their paycheck. The contribution limits for this account will increase from $13,570 to $13,840 for 2018.

 

 

 2017 and 2018 Contribution Amounts

 

 Benefit

 

 2017

 

 2018

 

 Health FSA

 

 $2,600

 

 $2,650

 

 Limited FSA

 

 $2,600

 

 $2,650

 

 Dependent Care

 

 $5,000

 

 $5,000

 

 Parking/Transportation

 

 $255 / $255

 

 $260 / $260

 

 Adoption Assistance

 

 $13,570

 

 $13,840

 

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