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I believe the $2,000 limit is your employer's limit. The only limits for plans that i am aware of are for dependant care assistance.

Highly compensated participant can be limited for 125 cafeteria plans. I think the limitation is based on the level of contribution by non key employees. But, I think you have nothing to lose by participating in the plan. The money will just be added back to your taxable income. NOTE i am not sure about this info, but you should do more research. It my experience that the average HR dept is useless with complex plans. They will use an outside service. Hopefully you can get a number and call someone that specializes in FSA.

If the Fool has a FAQ on cafeteria plan I would read it thoroughly. They are the best benefit i know of.

Good luck,

Eg
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