2023 FSA and Commuter Limits

Oct 18, 2022 | All, Compliance

The IRS has officially announced, under Revenue Procedure 2022-38, the 2023 Flexible Spending Account (FSA) and Commuter limits.

FSA Limits

    • The Health Care (standard or limited) FSA annual maximum plan contribution limit will increase from $2,850 to $3,050 for plan years beginning on or after January 1, 2023.
    • The Health Care (standard or limited) FSA rollover maximum limit will increase from $570 to $610 for plan years beginning on or after January 1, 2023.
    • The Dependent Care FSA maximum for 2023 is not subject to inflation (not included in Revenue Procedure 2022-38) and will remain at $2,500 for those married and filing separately and $5,000 for those single or married filing jointly.

Commuter Accounts Limits

    • The transit account monthly pre-tax contribution limit (combined participant and employers) will increase from $280 to $300 in 2023.
    • The parking account monthly pre-tax contribution limit (combined participant and employers) will increase from $280 to $300 in 2023.

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.

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