IRS releases 2022 cost-of-living adjustments for certain tax provisions

On Wednesday, Nov. 10, the IRS released 2022 cost-of-living increases for inflation for certain benefit accounts, retirement plans and other programs.

Limits that have increased

• Voluntary employee salary reduction contributions to a health flexible spending arrangement: $2,850 (up from $2,750)
• Maximum carryover amount of unused FSA funds: $570 (up from $550)
• Monthly limit on fringe benefit exclusion for transit and parking: $280 (up from $270)
• Maximum exclusion for qualified adoption expenses furnished pursuant to an adoption assistance program: $14,890 (up from $14,400)
• Maximum reimbursement from a qualified small employer health reimbursement arrangement (QSEHRA): $5,450 for individual coverage (up from $5,300) and $11,500 for family coverage (up from $10,700)

Read Procedure 2021-45 for changes to benefit accounts.
Read Notice 2021-61 for changes to retirement plans.