Need to Know Employee Benefit Limits for 2022

The 2022 contribution limits for certain employee benefit programs were released by the Internal Revenue Service (IRS) this November. Here is a summary of some of those contribution limit adjustments for Health FSAs, Dependent Care FSAs, Commuter Programs, and Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs).

Health Flexible Spending Accounts (Health FSAs)

• The payroll deduction contribution limit for 2022 plan years is $2,850 (an increase of $100)
• Up to $570 of unused funds can be carried over to the 2023 plan year (an increase of $20)

Note: Plan years ending in 2021 may optionally allow unlimited carryover to the 2022 plan year because of a temporary provision that was included in the Consolidated Appropriations Act of 2021 (CAA).

Dependent Care Flexible Spending Accounts (Dependent Care FSAs)

• The maximum contribution is $5,000 for the calendar year (or $2,500 if married filing taxes separately)

Note: The $10,500 contribution limit (or $5,250 if married filing taxes separately) for the 2021 calendar year was a one-year temporary provision that was included in the American Rescue Plan Act (ARPA).

Commuter Programs

• The monthly contribution limit for mass transit is $280 (an increase of $10)
• The monthly contribution limit for qualified parking is $280 (an increase of $10)

Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs)

• The maximum annual contribution for single-only coverage is $5,450 for 2022 plan years (an increase of $150)
• The maximum annual contribution for family coverage is $11,050 for 2022 plan years (an increase of $350)

One Last Thing

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 read through those limits again, please click here.