IRS Releases 2023 FSA Contribution Limits
Published on October 20th, 2022
Each year, the IRS updates the contribution limit that an account holder can contribute into their healthcare flexible spending account (FSA), and the amount that eligible account holders are able to carryover to the following plan year.
The IRS recently announced updated 2023 FSA contribution limits, which are seeing an increase due to rising costs and inflation. Employees can now contribute $200 more this year to their FSA (including limited-purpose FSAs) – which is double the increase from the previous year. Additionally, for those whose plans permit carryover of unused funds, the carryover amount is increasing from $570 to $610.
To summarize, the inflation-adjusted increases for 2023 are:
- Health Flexible Spending Accounts Contribution Limit: Increases to $3,050 in 2023 (up $200 from $2,850 in 2022)
- FSA Carryover Limit: Increases to $610 in 2023, up from $570 in 2022
Alegeus will continue to keep you up-to-date as the IRS releases the cost of living adjustments for other benefit accounts.