On October 19, 2017, the IRS released Revenue Procedure 2017-58, which increases the 2018 limits for certain fringe and welfare benefits as follows:
- Health Care Flexible Spending Accounts: The maximum amount an employee may contribute toward a healthcare flexible spending account through salary reduction is $2,650.
- Qualified Transportation Benefits: The monthly limits for qualified parking expenses and commuter highway expenses/transit passes are $260. The limit for qualified bicycle commuting reimbursements is unchanged ($20 per month).
- Adoption Assistance Programs: The maximum amount that can be excluded from an employee?ÃÃs gross income for qualified adoption expenses provided through an adoption assistance program is $13,840. This limit phases out for taxpayers whose modified adjusted gross income is over certain limits.
- Qualified Small Employer Health Reimbursement Arrangement (?ãQSEHRA?ÃÂ¥): The reimbursement limit for a QSEHRA is $5,050 for individual coverage and $10,250 for family coverage. QSEHRAs are limited to small employers with fewer than 50 full time equivalent employees. Please see our earlier discussion of?áQSEHRAs.