IRS Released More Benefit Limits for 2022

The IRS has released the 2022 contribution limits for FSA and several other benefits in Revenue Procedure 2021-45. The limits are effective for plan years that begin on or after January 1, 2022.

• The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) increases to $2,850.

• If the cafeteria plan permits the carryover of unused amounts, the maximum carryover amount is $570.

• The monthly limitation for qualified transportation fringe benefit regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $280. The monthly limit for qualified parking is also $280.

• Health Savings Account limits were already published, but they also increased to $3,650 for employee-only coverage and $7,300 for family coverage.