2023 Health FSA And Other Benefit Limits
The Internal Revenue Service (IRS) recently published Revenue Procedure 2022-38.
The Revenue Procedure includes the inflation-adjusted 2023 contribution limits for certain employee benefit programs. Below is a summary of some of those contribution limit adjustments.
Revenue Procedure 2022-38 includes the inflation-adjusted 2023 contribution limits for certain employee benefit programs. Below is a summary of some of those contribution limit adjustments.
Health Flexible Spending Accounts (Health FSAs)
- The payroll deduction contribution limit for 2023 plan years is $3,050 (an increase of $200).
- Up to $610 of unused funds can be carried over from the 2023 plan year to the 2024 plan year (an increase of $40). Carryover is an optional feature that employers can have with the Health FSA they offer to their employers.
Dependent Care Flexible Spending Accounts (Dependent Care FSAs)
- The maximum contribution limit is $5,000 for the 2023 calendar year (or $2,500 if married and filing taxes separately). This contribution limit is not inflation adjusted.
Commuter Programs
The monthly contribution limit for mass transit is $300 (an increase of $20).
The monthly contribution limit for qualified parking is $300 (an increase of $20).
Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs)
The maximum annual contribution for single-only coverage for 2023 plan years is $5,850 (an increase of $400).
The maximum annual contribution for family coverage for 2023 plan years is $11,800 (an increase of $750).
Earlier this year, the IRS issued a separate Revenue Procedure with the limits for High Deductible Health Plans (HDHPs) and Health Savings Accounts (HSAs). To see those limits, please click here.
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