In Revenue Procedure 2021-45, the IRS published details on how Flexible Spending Accounts (FSAs) and qualified transportation benefits can be used in 2022. The adjustments accounts for inflation, and I’ll summarize all of the changes for you here.
The 2022 annual FSA contribution limit will be $2,850. Be sure to check your plan details. That is the maximum you can contribute, but your employer may choose to offer a lower contribution amount.
If you have a health FSA, it can be used for a wide variety of out-of-pocket healthcare expenses. Some examples of qualifying purchases include medications, co-pays, dental and vision expenses, and more.
Not everyone is able to spend down their FSA funds during the calendar year. To help alleviate that stress, your employers may offer a carryover provision. If they do, in 2022, the most you can carryover is $570. If not, you may also receive a grace period. These aren’t automatic provisions, so again, check your plan to see either one is available.
In addition to announcing 2022 FSA details, this document also sets the 2022 monthly limits for qualified transportation benefits. That limit has increased to $280 per month.
Qualified transportation benefit accounts can cover expenses for transit passes, commuter vehicle fare, and parking fees associated with traveling to and from a person’s place of work.
Starting January 1, 2022, HSA owners may contribute:
The out-of-pocket maximums also go up, while the HDHP minimum deductibles will stay the same. Learn more about 2022 HSA contribution limits, out-of-pocket maximums, and minimum deductibles.
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