The IRS just released 2022 contribution limits for FSAs, commuter benefits, adoption assistance, QSEHRAs, and more. They also increased the FSA carryover limit for 2022.
· The 2022 Medical contribution will be $2,850 per year up $100 from last year.
· The 2022 FSA carryover is $570 per year, which is up $20 from *2021
*COVID relief – Notice 2021-15 allowed for 100% Carryover for plan years 2020 &2021 - Reminder: If your plan allowed for 100% rollover due to COVID Relief Notice 2021-15 – 2021 Plan year is the last year that you can allow for 100% rollover in Healthcare FSA & Dependent Care.
· Maximum Annual Contribution Limit; married and filing jointly or single parent is $5,000
· Maximum Annual Contribution Limit; married filing separate is $2,500
The 2022 cafeteria plan daycare contribution limit has been reduced back down to the $5,000 for a married couple filing a joint return, or for a single parent filing as “Head of Household.” For a married couple filing separate returns, the limit is $2,500 each.
If your plan was amended to increase the DCAP for 2021 - An employee who isn't able to use the entire amount available under a DCFSA in 2021 will have all of2022 to use amounts remaining from 2021 for reimbursement of eligible expenses incurred in 2022.