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).