On October 19, 2017, the Internal Revenue Service (IRS) announced annual inflation adjustments for more than 50 tax provisions, including an increase in voluntary employee contributions to employer-sponsored healthcare flexible spending arrangements (HFSAs) to $2,650 for plan years beginning in 2018, up from the 2017 limit of $2,600.
The IRS also announced an increase in the 2018 monthly limits for qualified transportation fringe benefits under § 132(f). For transportation in a commuter highway vehicle and any transit pass, the limit will be $260 (up from $255 this year). The monthly limit for qualified parking also will be $260.
Details of this announcement can be found in the Revenue Procedure 2017-58, which is scheduled to be published in final format in early November.
