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