2016 Limits Released for 401k, Simple IRA, Social Security Threshold, HSA, and FSA

MoneySocial Security
The maximum amount of earnings subject to Social Security taxes will remain at $118,500.

Health Savings Account
The HSA contribution single limit will remain at $3,350 and the family limit will increase to $6,750. The catch up limit for individuals over age 55 will remain at $1,000. Note: To be eligible to have contributions made to an HSA, an individual must be covered under a high deductible health plan and meet certain other eligibility requirements.

High Deductible Health Plan
For calendar year 2016, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,550 for self-only coverage or $13,100 for family coverage.

Flexible Savings Account
The 2016 annual limit on employee contributions to employer-sponsored FSAs will remain at $2,550.

The 401k contribution limits will not change in 2016.  The maximum you can contribute to a 401k will remain at $18,000. The catch-up contribution limit for people age 50 or older will remain at $6,000.

Simple IRA
The Simple IRA contribution limit will remain at $12,500.  That catch-up contribution limit for individuals ages 50 and older will rise remain at $3,000.