Headline: IRS Announced2022 FSA, Commuter Benefits and Adoption Assistance Contribution Limits

The IRS announced an increase in contribution limits for the 2022 tax year.

On November 10, 2021, the IRS announced the maximum 2022 contribution limits for health care flexible spending accounts (FSAs) and limited purpose FSAs, commuter benefits and adoption assistance. For the 2022 plan year limits have increased as follows:

  2022 2021 Increase
FSAs $2,850 $2,750 $100
FSA rollover (if plan permits) $570 $550 $20
Commuter benefits $280 / month $270 / month $10
Adoption assistance $14,890 $14,440 $450

Important details:

  • If you provide health care FSA employer contributions, this amount is in addition to the amount that employees can elect. Employees can elect up to the IRS limit and still receive the employer contribution in addition.
  • If you have adopted a $550 rollover for the health care FSA, any amount that rolls over into the new plan year does not affect the maximum limit that employees can contribute.
  • Read the IRS announcement at irs.gov*.

*IRS.gov is governed under separate privacy and website policies, which are available for review on their site.

Flexible spending accounts (FSAs), health reimbursement accounts (HRAs), dependent care assistance programs (DCAPs), Transit and Parking Programs, Adoption and Surrogacy Assistance, Tuition Reimbursement Programs, Wellness Programs, and Lifestyle Reimbursement Programs are administered on behalf of your plan sponsor by Optum Financial and are subject to eligibility and restrictions. Federal and state laws and regulations and the design of your plan are subject to change.