IRS Announces 2016 Health FSA, HSA, HDHP and Transportation Plan Limits
The IRS has announced cost of living adjustments for health flexible spending accounts (“health FSAs”) in Section 125 cafeteria plans, contributions to health savings accounts (“HSAs”), out-of-pocket maximums under high deductible health plans (“HDHPs”) and qualified transportation plan benefits for 2016.
For 2016, the health FSA limit on voluntary employee salary reduction contributions will remain $2,550 (unchanged from 2015). For 2016, the HSA contribution limit for individuals will remain $3,350 (unchanged from 2015). For families the HSA contribution limit for 2016 is $6,750 (increased from the 2015 limit of $6,650). For 2016, the HDHP out-of-pocket maximum for individuals is $6,550 (increased from the 2015 limit of $6,450). For families the HDHP out-of-pocket maximum for 2016 is $13,100 (increased from the 2015 limit of $12,900).
For qualified transportation plan parking for 2016, the limit is $255 (increase from the 2015 limit of $250). For commuter highway vehicle and transit passes for 2016, the limit will remain $130 (unchanged from 2015).