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Maximum FSA contributions in 2016
UPDATE: To see the 2018 FSA contribution limit, click here.
Thinking about the next year and wondering about FSA contribution limits? On January 1, 2015, the Flexible Spending Account (FSA) contribution limit was increased. This was the first increase since the passage of the Patient Protection and Affordable Care Act (PPACA) in 2010, jumping $50 to a yearly cap of $2,550. The maximum FSA contribution limit and how that limit can increase are mandated by inflation and assorted provisions in the Affordable Care At.. As 2016 isn't too far away and open enrollment is coming up for many companies, many FSA account holders may have been wondering about the contribution limits for next year.
According to the U.S. Bureau of Labor Statistics, through the 12-month period ending in July 2015, the consumer price index rose just 0.2%. With inflation remaining low and energy prices dropping, it would take a massive hike in inflation throughout the month of August to trigger a rise in the FSA contribution limits in 2016. Therefore, account holders should expect to work with a $2,550 contribution limit again throughout 2016.
FSA Contribution Limits Explained More
While FSAs continue to be among the most popular consumer spending accounts available to employers, their use has dropped in recent years due to the rise in use of health reimbursement arrangements (HRAs) and high-deductible health plans (HDHPs) and their accompanying health savings accounts (HSAs). According to Benefit Insurance, the average FSA contribution per participant fell to $1,342 in 2015, down from $1,405 in 2014, while just 17 percent of employees utilizing FSAs made contributions in 2015, down from 20 percent the prior year. One thing is certain, and that is that FSAs continue to offer tax savings to consumers, and provide an additional way to save on growing healthcare expenses. FSAs can also be used for expenses not typically covered by health insurance, such as visits to specialists like acupuncturists, and chiropractors. However, you can also use your FSA for regular doctor's office visits (covering deductibles and co-pays with an FSA, for example), or even for eye and dental care (annual exams).
The FSA contribution limit looks to stay the same for 2016, but you can always get more from your employee benefits when you shop at FSAstore.com! Check out the largest selection of FSA eligible items on the web, as well as our Learning Center and Eligibility Listto help you maximize the usage of your consumer spending account!
You can read additional information via: http://www.businessinsurance.com/article/20150520/...