The IRS published Revenue Procedure 2022-38 on October 18, 2022, detailing 2023 limit increases for Flexible Spending Accounts (FSAs), Transit, and Adoption benefits.
FSA Limit for 2023
The maximum annual contribution for Health FSAs is rising from $2,850 in 2022 to $3,050 in 2023.
Dependent Care FSA limits remain $5,000 for married couples filing jointly and head of household. The limit for a married couple filing separately remains at $2,500.
FSA Carryover Increase
The annual FSA Carryover limit is indexed to 20% of the annual contribution limit. As the FSA limit is increasing to $3,050 for 2023, the annual FSA Carryover limit will increase from $570 to $610.
Transit Limits Increase
Monthly qualified parking benefits and qualified transportation fringe benefits will each increase from $280 per month in 2022 to $300 per month for 2023 plans.
Adoption Assistance Increase
Adoption Assistance sponsored by employers had a limit of $14,890 in 2022. For 2023, that limit will increase to $15,950.
The IRS announced 2023 HSA limits earlier this year. Information on those is available here.
DataPath Administrative Services offers complete HSA administration services, including account management, banking, and investments.
