Important Plan Limits for 2016

Every year, the IRS announces important plan limits for High Deductible Health Plans, Health Savings Accounts, Flexible Spending Accounts and 401(k) plans. Important limits for 2016 are summarized below.

Flexible Spending Accounts:

The maximum deferral to a Medical Flexible Spending Account remains at $2,250.

Qualified Transportation Benefits

2016 Limits Change from 2015
Commuter vehicle and transit pass $130 No change
Qualified Parking $255 +$5

 

 

High Deductible Health Plans

For 2016, the IRS has indicated the minimum deductibles for a plan to be considered “qualified” remain unchanged, however, the Maximum Out of Pocket limits have increased.

2016 Limits Change from 2015
HDHP minimum deductibles $1,300 single only

$2,600 family

No changes
HDHP out of pocket maximum $6,650 single only

$13,100 family

+$100 single only

+$200 family

HSA Contribution Limits $3,350 single only

$6,750 family

 

Combination of employer and employee contributions

No change single only

+$100 family

 

Please keep in mind, the out of pocket limits listed by the Affordable Care Act are higher than the permissible IRS maximums. To qualify for a Health Savings Account, OOP Maximums may not be higher than those listed above.

Is your single HDHP deductible greater than $6,650 for 2016?

If so, you may need to make plan design changes to allow an embedded self-only deductible for those electing family plans to comply with the ACA.

Retirement Plan Maximums

On October 21,2015 the IRS announced limits for 401k plans will remain the same for 2016.

2016 Limits
Maximum employee deferral $18,000
Catch Up Contribution Limits

(Employees 50+)

$6,000

 

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