The IRS has officially announced, under Revenue Procedure 2020-45, the 2022 Flexible Spending Account (FSA) and Commuter limits.

FSA Limits

• The Health Care (standard or limited) FSA annual maximum plan contribution limit will increase from $2,750 to $2,850 for plan years beginning on or after January 1, 2022.
• The Health Care (standard or limited) FSA rollover maximum limit will increase from $550 to $570 for plan years beginning on or after January 1, 2022.
• The Dependent Care FSA annual maximum plan contribution limit is $2,500* for those married and filing separately and $5,000* for those single, or married filing jointly.

*The temporary increase to Dependent Care FSA limits applies only to the 2021 calendar year so these limits will revert back to their usual limit amount for plan years beginning on or after January 1, 2022.

Commuter Accounts Limits

• The transit account monthly pre-tax contribution limit (combined participant and employers) will increase from $270 to $280 in 2022.
• The parking account monthly pre-tax contribution limit (combined participant and employers) will increase from $270 to $280 in 2022.

Looking Ahead

With open enrollment beginning for many employers, these limits can help employers think about their benefit plan and consider if they want to make any changes for their upcoming plan year

You can access up-to-date statutory limit information year round at www.ebcflex.com/PlanLimits.