IRS Benefit Limits

 

IRS Benefit Limits	Plan Years Beginning 2023	Plan Years Beginning 2022
Health FSA (FSA) & Limited Purpose FSA (LPF) *	$3,050 / year	$2,850 / year
Carryover Provision of unused amounts for FSA & LPF **	$610 / year	$570 / year
Dependent Care FSA (DCAP) ***	$5,000 / year	$5,000 / year
Commuter Transit & Parking (pre-tax limit)	$300 / month	$280 / month
QSEHRA (Qualified Small Employer HRA)	$5,850 / individual $11,800 / family	$5,450 / individual $11,500 / family
Health Savings Account (HSA) (previously released)	$3,850 / individual $7,750 / family	$3,650 / individual $7,300 / family

* For the Health FSA & Limited Purpose FSA (LPF) – If an employer has adopted the IRS Maximum contribution limit as indexed by the IRS, no action needs to be taken. The FSA plan documents allow for this change automatically.

** The Carryover Provision maximum is indexed to 20% of the IRS annual election limit for the Health FSA and Limited Purpose FSA (increases will always be in increments of $10 for the Carryover maximum).

*** The Dependent Care FSA (DCAP) limit is $5,000 if Single or Married filing income taxes jointly, and $2,500 if Married filing income taxes separately.

On 10/19/2022, the IRS released Revenue Procedure 2022-38, providing cost-of-living increases for certain plans for 2023. For a copy of Revenue Ruling 2022-38 please click on the link below:

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023