2015 FSA Contribution Limits

2015 FSA Contribution Limits

The annual dollar limit on employee contributions to employer-sponsored health care Flexible Spending Accounts rises to $2,550 in 2015, up from $2,500 in 2014.

The annual limit for dependent care FSA or dependent care assistance plans (DCAPs) will remain at $5,000 for qualifying individuals and those who are married and file a joint return, and will remain at $2,500 for those who are married and file separate returns.

In 2014 the U.S. Treasury Department and the IRS altered the “use-it-or-lose-it” rule, allowing employer to offer a carryover of up to $500 in unused health FSA funds to the following year or to continue a grace period option giving employees a two and a half month extension to spend the funds. FSAs cannot have both a carryover and a grace period options, and employer are not obligated to offer either extension.

For additional information, please visit the IRS site.