28 October 2016 IRS releases fringe benefit inflation adjustments for 2017 Most Medical Savings Account (MSA) limits go up in 2017 Summarized below are the 2017 limits that apply to MSAs under Section 220(c)(2)(A). Provision | Self-only coverage | Family coverage | High deductible health plan: annual deductible | Not less than $2,250 (unchanged from 2016) and not more than $3,350 (unchanged from 2016) | Not less than $4,500 (up from $4,450 in 2016) and not more than $6,750 (up from $6,700 in 2016) | Annual out-of-pocket (other than for premiums) | Not to exceed $4,500 (up from $4,450 in 2016) | Not to exceed $8,250 (up from $8,150 in 2016) |
Adoption assistance limit goes up The limit on qualified adoption assistance (including special needs children) under Sectiom 23(a)(3) for 2017 is $13,570, up from $13,460 in 2016. Health flexible spending account (FSA) limit goes up The 2017 annual limit on the amount of pretax contributions employees can make toward their health flexible spending account through a cafeteria plan under Section 125(i) is $2,600, up from $2,550 in 2016. Transportation fringe benefits (parking and transit) unchanged The 2017 monthly limit on parking benefits under Section 132(f)(2)(B) is $255, unchanged from 2016. The 2017 aggregate monthly limit for transportation in a commuter highway vehicle and any transit pass under Section 132(f)(2)(A) is also $255, unchanged from 2016. For the key federal and state rates and limits in 2016 see our special report here. Contact Information
For additional information concerning this Alert, please contact:
| Employment Tax Services Group | | • Debera Salam | (713) 750-1591 |
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Other Contacts| Employment Tax Services Group | | • Gregory Carver | (214) 969-8377 | | • Richard Ferrari | (212) 773-5714 | | • Kenneth Hausser | (732) 516-4558 | | • Kristie Lowery | (704) 331-1884 | | • Christina Peters | (614) 232-7112 | | • Debbie Spyker | (720) 931-4321 |
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Document ID: 2016-1838 | 
