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2017 Consumer-Driven Account Contribution & Reimbursement Limits

Posted on November 1st, 2016

The 2017 contribution and reimbursement limits for consumer-driven accounts (CDAs) are now available and have been provided below:
 
Health Care Flexible Spending Account (Health Care FSA)
 
The salary reduction limit is $2,600 ($50 increase from 2016) for the 2017 plan year. Employers may also contribute the greater of $500 or up to a dollar-for-dollar match of the employee’s salary reduction. The maximum carryover amount remains unchanged at $500.
 
Dependent Care Flexible Spending Account (Dependent Care FSA)
 
The maximum calendar year contribution is $5,000 for single parents or those who are married and filing taxes jointly. The maximum calendar year contribution is $2,500 per spouse if married and filing taxes separately. Please note that the Dependent Care FSA contribution limits are not tied to inflation. In order for these amounts to ever increase, Congress would have to pass a law.
 
Health Savings Accounts (HSAs)
 
The maximum annual contribution is $3,400 ($50 increase from 2016) for people covered by a single-only qualified high deductible health plan (HDHP) and meeting other eligibility requirements. The maximum annual contribution is $6,750 (unchanged from 2016) for people covered by a family HDHP and meeting other eligibility requirements. People aged 55 and older may also contribute an extra $1,000 (unchanged from 2016) to the account. The contribution limits may have to be pro-rated on a monthly basis if a person isn’t considered to be HSA-eligible the entire year.  
 
Health Reimbursement Arrangements (HRAs)
 
Reimbursement amounts are not regulated by the IRS or any other agency. The employer determines the maximum reimbursement amount.  
 
Commuter Plans
 
The maximum monthly limit for qualified parking reimbursements is $255.The maximum monthly limit for mass transit reimbursements is $255. Both of these amounts are unchanged from 2016.   
 

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