Benefits Blog

2016 FSA Limits

Posted by on Tuesday, November 03, 2015 @ 03:23 PM

The IRS has announced the annual contribution limits for 2016 (IRS News Release IR-2015-119, Oct. 21, 2015).  Most benefit limits will remain unchanged for plan years starting on or after January 1st, 2016. Qualified parking is the only benefit with a change, increasing $5 per month from $250 to $255. 

The following limits are detailed in IRS Revenue Procedure 2015-53:

  • Qualified Parking: $255/month – increased from $250/month in 2015
  • Qualified Transportation: $130/month
  • Medical Flexible Spending: $2,550
  • Limited Purpose Flexible Spending: $2,550
  • Dependent Care Flexible Spending: $5,000

Also, if your plan offers a Health Savings Account (HSA), the annual contribution limits for 2016 are detailed in IRS Revenue Procedure 2015-30 as follows:

  • Individual Coverage: $3,350
  • Family Coverage: $6,750 – increased from $6,650 in 2015
  • Catch-up for age 55+: $1,000

Topics: IRS