IRS Releases New Health Care FSA and Commuter Benefit Account Limits and Updates Carryover Maximum for 2022
What you need to know:
- For Flores Health Care FSA clients currently allowing the IRS maximum contribution of $2,750, Flores will automatically adjust your Health Care FSA plan to allow for enrollment up to the IRS maximum of $2,850 in 2022. Flores plan documents will be updated automatically to reflect the change. No changes will be made to your plan maximum if you indicated you do not want an automatic adjustment on your 2022 re-enrollment checklist.
- For plans permitting a Health Care FSA carryover, the carryover limit has been increased by $20 to $570 for 2022 plans. Carryover limits will be automatically increased to $570 for all Health Care FSA clients currently allowing participants to carryover up to $550. If you do not wish for your carryover limit to be increased, please notify your Account Manager.
- Monthly Commuter Benefit limits for parking and for transit will rise by $10 from $270 to $280 for tax year 2022.
Charlotte, NC – November 10, 2021 – The Internal Revenue Service issued Revenue Procedure 2021-45 today. This ruling increased the Health Care FSA Limit to $2,850, an increase of $100 over the 2021 limit of $2,750, for plan years beginning on or after January 1, 2022.
The monthly limit on the value of the qualified transportation benefits exclusion for qualified parking provided by an employer to its employees for 2022 increased to $280, from the $270 limit in 2021. The monthly limit for transportation in a commuter highway vehicle and transit pass provided by an employer to its employees also increased to $280 for 2022, an increase of $10 from the 2021 limit of $270.
In addition to these increases, the maximum carryover amount permitted for plans that have elected this feature has increased to $570 for 2022, an increase of $20 from the 2021 limit of$550. Earlier this year the IRS released 2022 HSA limits in Revenue Procedure 21-25. The HSA contribution limit for 2022 will be $3,650 for single coverage and $7,300 for family coverage levels. The HSA catch up contribution amount for individuals 55 and older will remain at $1,000. Read more