2023 Health FSA And Other Benefit Limits

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.