On November 10, 2021, the Internal Revenue Service (IRS) published Rev. Proc. 2021-45, announcing the 2022 annual contribution limit for Flexible Spending Accounts (FSAs), maximum carryover amount, contribution limits for Transportation benefits and more.
2022 FSA Contribution Limits
The annual maximum 2022 FSA contribution limit will increase to $2,850. The annual limit applies to Health FSAs.
A health FSA can be used for out-of-pocket healthcare expenses, such as co-pays, dental and vision expenses, medications (OTC and prescription), first aid supplies, and much more.
2021 Max FSA Carryover Limits
The maximum carryover limits for FSAs will also increase to $570. In accordance with IRS Notice 2020-33, the carryover limits will be indexed to 20 percent of the maximum annual election. To allow for the carryover increase, employers must amend their plans.
2022 Limits for Qualified Transportation Benefits
The per month limit for “…transportation in a commuter highway vehicle and any transit pass is $280.” Qualified parking has a per month limit of $280, as well.
HSA Contribution Limits for 2022
The IRS previously published the annual contribution limits for Health Savings Accounts. For 2022, a person with self-only coverage can contribute up to $3,650. A person with family coverage can contribute a maximum of $7,300.
Learn more about the 2022 HSA contribution limits, out-of-pocket maximums, and the minimum annual deductibles.
Beneliance has provided Arkansas employers with comprehensive third-party employee benefits administration and compliance services since 1996. Please enter your email (above right) to receive notifications about new blog articles as they are published.
