The maximum annual contribution limit for flexible spending accounts will edge up $50 to $2,550 for 2015, the IRS announced late Thursday.
The limit will begin Jan. 1. It's the first contribution increase since the Patient Protection and Affordable Care Act set a $2,500 annual limit, making it the second big change to the savings account in the last year.
Last fall, the U.S. Department of the Treasury and the IRS issued a notice modifying the longstanding "use-or-lose" rule for FSAs. Participants now can carry over up to $500 of their unused balances remaining at the end of a plan year. The rule went into effect in 2014. The use-it-or-lose-it rule was seen as a barrier to adoption, and industry insiders have predicted the FSA adoption will grow with that amendment, especially in 2015.
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