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Important Reminder About Application of 2022 Health Care FSA Carryover Limits

October 25, 2022 - Many employers opted to allow unlimited carryover for Health Care FSAs under temporary relief allowed by the agencies due to the COVID-19 national emergency. If adopted by an employer, the temporary relief allowed unlimited Health Care FSA carryovers (1) from the FSA plan year ending in 2020 to the plan year ending in 2021 and/or (2) from the FSA plan year ending in 2021 to the plan year ending in 2022. As a reminder, the IRS FSA maximum carryover limits are back in place for the plan year ending in 2022 (and going forward). For a calendar year plan, the maximum Health Care FSA carryover from the 1/1/2022 plan year to the 1/1/2023 plan year is $570. Employees with significant Health Care FSA balances will want to take care to use their FSA dollars so as not to forfeit unused balances in excess of $570 under the carryover rules.

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