2022 Indexed Benefit Figures Including FSA Limit Increase
Annually, the Internal Revenue Service and Social Security Administration release cost-of-living adjustments that apply to dollar limitations set forth in certain IRS Code Sections. The Consumer Price Index warranted increases in some benefits figures for 2022—for a summary and charts of all key 2022 figures that are of interest to employers and sponsors of benefit plans, please click here.
Below is a summary of recently released 2022 limits related to health flexible spending accounts (FSAs) and commuter benefits.
The annual contribution limit for health FSAs will increase to $2,850 in 2022. This is a $100 increase from the 2021 contribution limit. An increased FSA carryover for 2022 was also announced. The 2022 FSA carryover limit is $570 per year, which is up $20 from 2021.
Commuter (Parking and Transit)
The commuter benefits limit in 2022 for mass transit and parking will increase to $280 per month. This is an increase from the 2021 monthly limit, which was $270.
As always, please do not hesitate to reach out to our Group Benefits team with any questions.