The ACA imposes a maximum dollar limit on employees’ salary reduction contributions to a health FSA. Although the ACA set this limit at $2,500, the limit is indexed for cost-of-living adjustments each year. On Oct. 21, 2015, the IRS announced that, for taxable years beginning in 2016, the dollar limit on employees’ salary reduction contributions to a health FSA will remain unchanged at $2,550.

HCR Health FSA Limit is Unchanged for 2016