The Internal Revenue Service just issued Revenue Procedure 2016-55 announcing an increase in the health Flexible Spending Account (FSA) salary reduction contribution limit for 2017 to $2,600. The Affordable Care Act limited employee contributions to FSAs at $2,500 per plan year but included a provision to increase the limit to account for inflation. In 2015, the limit increased to $2,550. Now, for plan years beginning on or after January 1, 2017, employees may contribute up to $2,600. Employers that have not updated their Section 125 cafeteria plan document to automatically incorporate the FSA cost-of-living increases but who want to allow their employees to contribute up to the new maximum will need to amend the plan document.