The IRS has released Rev. Proc. 2022-38 whereby it announced various changes to tax benefits based on inflation. For the taxable years beginning in 2023, the dollar limitation under §125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $3,050 (increase from $2850 in 2022). If the plan permits the carryover of unused amounts, the maximum carryover is $610 (increase from $570 in 2022).
Download the content below for an explanation of the latest changes.
If you have any questions, please feel free to contact your PCI Benefits Consultant.
Health FSA Limit Will Increase for 2023
This ACA Legal Update explains the new health FSA limits for 2023.
