SONYA M. GORDON, October 2014 —
On October 30, the Internal Revenue Service (“IRS”) released its annual inflation adjustment guidance for over 40 federal tax provisions, including annual contribution limits for tax-qualified health flexible spending arrangements (“Health FSAs”) and monthly limits for qualified transportation benefits. These and the other tax adjustment limits were covered in IRS Revenue Procedure 2014-61 and a companion news release (IR-2014-104).
Under Revenue Procedure 2014-61, a participant’s annual contribution limit for a Health FSA will increase to $2,550 in 2015 (from $2,500 in 2014). By contrast, transportation benefit limits will remain at 2014 levels, i.e., a $130 monthly limit for transportation in a commuter highway vehicle and/or transit pass and a $250 monthly limit for qualified parking benefits.