On October 18, 2022, the Internal Revenue Service (IRS) announced the annual Health FSA contribution limited for 2023, will be raised to $3,050, up from $2,850 in 2022. That means employees can put an extra $200 in their flexible spending accounts.
Additionally, in cases where the employer’s plan allows unused FSA amount carryover, the carryover amount also rises $40 from $570 to $610 for 2023.
By making this announcement in mid-October, as compared to the November announcement in year’s past, employers should benefit from having more time to incorporate these adjustments into their open enrollment collateral.
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The information contained in this article is intended for educational purposes and to provide a general understanding of regulatory events, legislative changes and the law – not to provide specific legal advice. Employers are advised to discuss and/or receive counsel from their licensed legal or accounting professional, prior to implementing any new policy or policy change.