IRS Releases Rev. Proc. 2014-61 Addressing FSA and Transportation Benefit Limits for 2015

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.