Employees will be able to contribute up to $2,650 to a health flexible spending account (FSA), a $50 increase from 2017. The monthly limits on the qualified transportation fringe benefit, as well as the qualified parking benefit, will increase to $260 (from $255). The annual compensation that makes a company’s officer a “control employee”, for fringe benefit valuation purposes, will rise from $105,000 in 2017 to $110,000 (announced separately in Notice 2017-64). The bar for “highly compensated employee” is unchanged at $120,000, and the dollar limit that defines a “key employee” in a top-heavy plan remains $175,000. The maximum amount that may be excluded from an employee’s gross income under an employer-provided adoption assistance program rises to $13,840 (up $270 from 2017). In addition to this increase, the maximum adoption credit allowed to an individual for the adoption of a child will also be $13,840 (a $270 increase from 2017). Both the exclusion and the credit will begin to be phased out for individuals with modified adjusted gross incomes greater than $207,580 and will be entirely phased out for individuals with modified adjusted gross incomes of $247,580 or more (both up $4,040 from 2017). Rev. Proc. 2017-58 raises the long-term care (LTC) insurance premium amounts that will be deductible in 2017. These will range from $420 for taxpayers aged 40 or younger, to $5,200 for those older than 70. The per diem limitation on LTC insurance payments remains $360. The maximum amount of payments and reimbursements under a Qualified Small Employer Health Reimbursement Arrangements (QSEHRA) cannot exceed $5,050 for individual coverage and $10,250 for family coverage (a $100 and $200 increase from 2017, respectively).