On November 10, 2021, the Internal Revenue Service (IRS) announced 2022 annual limits for Flexible Spending Account (FSA) contributions, maximum carryover amounts, Transportation benefit (Transit/Commuter/Parking) contributions, and Qualified Small Employer Health Reimbursement Arrangement (QSEHRAs) amounts. The announcement was made in Rev. Proc. 2021-45.
2022 FSA Contributions
The maximum health FSA contribution limit will be $2,850. Health FSAs can be used for a wide range of qualified out-of-pocket expenses. These include over-the-counter and prescription medications, deductibles, copays, vision and dental expenses, lab fees, therapy, and more.
2022 FSA Carryover
FSA participants whose plans offer the Carryover provision may roll over a maximum of $570 in unused funds to the following year.
2022 Transportation Benefits
Transit and parking benefits are each limited to $280 per month for the 2022 plan year.
2022 HSA Contributions
The IRS had previously released HSA contribution limits for 2022. Both the single coverage and family coverage annual limits are increasing. The catch-up contribution limit for people age 55 and older remains the same at $1,000.
|Single Coverage||Family Coverage||Catch Up Contribution|
|2022||$3,650 (+ $50)||$7,300 (+ $100)||Annual Limit + $1,000|
|2021||$3,600||$7,200||Annual Limit + $1,000|
For Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs), the 2022 limits are $5,450 for single coverage and $11,050 for family coverage.
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