The IRS determined that the increase in cost-of-living index was insufficient to trigger an adjustment in many annual limits for 2016.
Health Flexible Spending Account contribution limits remain unchanged at $2,550.
Health Savings Account salary reduction contribution limits will remain at $3350 for self-only coverage and $6750 for family coverage.
Dependent Care contribution limits, which as regulated by statute rather than cost-of-living, remains at $2,500 if married and filing a separate tax return or $5,000 per year if married and filing a joint tax return or if filing as single or head of household.
Qualified Transportation and Parking Benefits will both have monthly reimbursement limits of $255. Legislation passed on December 18, 2015 restored, and made permanent, parity between the two benefits. Future inflationary adjustments will apply equally to both Qualified Transportation and Parking Benefits.
The IRS announced the dollar limits for contributions and benefits in retirement and certain deferred compensation plans for 2016. The key limits remain unchanged from 2015. The limits did not change because the IRS determined the increase in the cost-of-living index was insufficient to trigger an adjustment. See the chart below for selected limits.