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.

Recommended For You

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.