While we are awaiting an announcement from the IRS, the cap put on allowable employee contributions to Flexible Spending Accounts is expected to increase by $50. The cap index, which is based on the medical component of the consumer price index, did not increase last year. Inflation has been high enough to support an increase from the current level of $2,550 to $2,600 for 2017, however employers do not have to increase the limit. Some employers are increasing the limit prior to open enrollment, while others will likely hold off and make the adjustment for their 2018 plan year.
