The IRS has released the cost of living adjustments that affect the dollar limits for both retirement plans and health & welfare plans for the 2016 tax year. Most limits will remain unchanged from 2015 to 2016 because the increase in the Consumer Price Index did not meet the statutory thresholds for their adjustment. While health FSAs experience no limit increase, plan sponsors may still allow employees to carry over up to $500 into the next plan year.  For more on the carry-over rule, see our article. Please contact your Nyhart consultant for additional information or questions.



Retirement Limitations
  401(k) / 403(b) / 457 Plan Maximum Elective Deferral $18,000 No change
  Qualified Plan Compensation Limit $265,000 No change
  Catch-Up Contribution Limit for all plans other than   401(k)(11) and 408(p) plans $6,000 No change
  Catch-Up Contribution Limit for 401(k)(11) or 408(p) plans $3,000 No change
  Highly Compensated Employee Definition $120,000 No change
  Top Heavy Key Employee Definition $170,000 No change
  Defined Contribution Annual Additions Limit $53,000 No change
  Defined Benefit Annual Benefit Limit $210,000 No change
  Social Security Taxable Wage Base $118,500 No change
Flexible Spending Accounts (FSAs)
  Health FSA Limit $2,550 No change
  Dependent Care Account
   Married individuals, filing separately $2,500 No change
   Households $5,000 No change
Health Savings Account Limitations (HSAs)
  HSA Contribution Limits
  Individual $3,350 No change
  Family $6,650 $6,750
  Catch-up $1,000 No change
HDHP Out of Pocket Maximum
  Individual $6,450 $6,550
  Family $12,900 $13,100
HDHP Minimum Annual Deductible
  Individual $1,300 No change
  Family $2,600 No change
Employer Provided Adoption Assistance Programs $13,400 $13,460
Transportation Fringe Programs
  Mass Transit Expenses $130/month No change
  Parking Expenses $250/month $255/month