Health FSA Contribution Limit Projected to Remain at $2,600 in 2018

Health FSA Contribution Limit Projected to Remain at $2,600 in 2018

Share
[subscribe2 hide="unsubscribe"]

Volume 40 | Issue 100

pdf icon Download this FYI as a printable PDF

The annual limit on health FSA contributions is subject to indexing each year based on CPI-U. Although all data is not yet available, based on current information, we are projecting that the limit will remain at $2,600 for 2018.

Background

The Affordable Care Act amended the Internal Revenue Code to impose an annual limit on salary reduction contributions to health flexible spending accounts (FSAs). For tax years beginning after December 31, 2012, the limit was $2,500. Beginning in 2014, the limit is subject to indexing based on the increase in Consumer Price Index for All Urban Consumers (CPI-U) each year. The 2017 limit was $2,600. (See our October 25, 2016 For Your Information.)

2018 FSA Limit Projected to Remain at $2,600

The 2018 indexing will be based on CPI-U through August 2017. Although the August CPI-U will not be available for another month, based on CPI-U through July, we are projecting that the health FSA limit will remain at $2,600 for 2018. The IRS is not expected to formally release the 2018 FSA limit until late October.

 

Produced by the Knowledge Resource Center of Conduent Human Resource Services

The Knowledge Resource Center is responsible for national multi-practice compliance consulting, analysis and publications, government relations, research, surveys, training and knowledge management. For more information, please contact your account executive or email fyi@conduent.com.

You are welcome to distribute FYI® publications in their entireties. To manage your subscriptions, or to sign up to receive our mailings, visit our Subscription Center.

This publication is for information only and does not constitute legal advice; consult with legal, tax and other advisors before applying this information to your specific situation.