Flexible Spending, Qualified Parking & Transit and Health Savings Accounts
Compliance Alert
IRS Releases 2022 Cost of Living Adjustments for Medical Flexible Spending Accounts and Other Qualified Employee Benefits
The IRS released IRS Revenue Procedure 2021-45 which provides the 2022 cost-of-living increases for certain employee benefits effective for plan years that begin on or after January 1, 2022:
Medical FSAs:
Maximum Medical FSA Election increases from $2750 to $2850. GDI will automatically update your plan if your current maximum is $2750.
Maximum Carryover on Medical FSAs increases from $550 to $570. GDI will automatically update your Carryover if your current Carryover is $550.
Dependent Care FSAs:
The annual maximum for Dependent Care FSAs is $5,000 or $2,500, depending upon federal tax filing status.
Parking and Transit Accounts:
The monthly maximum available under Transit and Parking Account plans increases from $270 to $280
Health Savings Accounts:
As a reminder, the annual 2022 maximum contributions for Health Savings Accounts are $3,650 (employee only) and $7,300 (family). The HSA Catch-up contribution remains steady at $1,000.
