October 22, 2015 – Inflation Adjustments for Health FSAs And Transportation Plans
The IRS released its annual guidance regarding adjustments of certain statutory amounts for inflation. See https://www.irs.gov/pub/irs-drop/rp-15-53.pdf.
Included in the guidance are adjustments that impact the following employee benefits:
- The cap on salary reduction contributions to a health flexible spending account (FSA) is not being adjusted for 2016. The cap will remain at $2,550.
- The cap on the monthly exclusion for qualified parking benefits will increase to $255 for 2016. The cap on monthly transit benefits remains fixed by statute at $130.
Please contact us if you have any questions and/or you would like our assistance.