October 28, 2016

The IRS released the below inflation adjusted items for 2017:

Cafeteria Plans

For 2017, the dollar limitation on employee salary reduction contributions to a Health Flexible Spending Account will increase by $50 to $2,600 per plan year.  

Adoption Assistance Programs 

The maximum amount that may be excluded from an employee's gross income under an employer-provided adoption assistance program for the adoption of a child will increase to $13,570 for 2017. 

In 2017, the adoption credit will begin to phase out under § 137(b)(2)(A) for taxpayers with modified adjusted gross income over $203,540 and will be completely phased out for taxpayers with modified adjusted gross income of $243,540 or more.

Note: There are no changes to Qualified Transportation Fringe Benefits.  The maximum monthly election amount of $255 under the Parking Account and the maximum monthly election amount of $255 under the Transit Account will remain in effect for 2017.