On Tuesday, October 25, 2016, the IRS released Revenue Procedure 2016-55, which included a $50 inflation-adjustment increase on voluntary employee salary reductions for contributions to a Health FSA. 

For an FSA plan year beginning or renewing on or after January 1, 2017, the maximum contribution amount increases to $2,600 per participant per plan year for Full Purpose and Limited Purpose Health FSAs.

This is the maximum allowed per IRS regulations. If desired, an employer may choose to set a lesser amount as the Health FSA maximum for their company-sponsored plan.

The 2017 contribution maximum for a Dependent Care FSA did not change. It remains at $5,000 per household per calendar year.

For full details, see IRS Revenue Procedure 2016-55 and a related IRS document summarizing other tax benefit changes for 2017.