The Internal Revenue Service recently released Revenue Procedure 2022-38, announcing the cost-of-living adjustments for calendar year 2023. The dollar limitation on voluntary employee salary reductions for contributions to health Flexible Spending Accounts (FSA) increased to $3,050 (up from $2,850). If a cafeteria plan permits health FSA carryovers, the maximum amount that can be carried over to the 2024 plan is $610 (up from $570).
Health Flexible Spending Account Limits by Tax Year
For additional guidance on FSAs, please review IRS Publication 969.
If you have any questions, please contact your MedCost Account Manager.