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