2023 Health FSA Inflation Adjustments

On October 18, 2022, the Internal Revenue Service (IRS) issued Revenue Procedure 2022-38 that sets forth various 2023 tax-related limits that have been adjusted for inflation. The table below identifies updates to the 2023 health and fringe benefit plan limits addressed in the notice.

Benefit

2022

2023

Maximum Annual Employee Contribution to a Health Flexible Spending Account (Health FSA)

$2,850

$3,050

Health FSA Carryover Limit

$570

$610

Adoption Assistance Programs

$14,890

$15,950

Maximum Annual Employer Contribution to Qualified Small Employer HRA (QSEHRA)

$5,450

(self-only coverage)

$11,050

(family coverage)

$5,850

(self-only coverage)

$11,800

(family coverage)

Maximum Monthly Benefit for Qualified Transit Passes, Van Pool Services, and Qualified Parking

$280

$300