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 |
Health Savings Account (HSA) (previously released) |
$3,850 / individual |
$3,650 / individual |
* 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