On Tuesday, October 18, 2022, the IRS announced the 2023 contribution limits for reimbursement accounts. Here are the new annual limits for account holders beginning on January 1, 2023.
2023 Contribution Limits for FSAs
Health FSA
- For 2023, the Health Flexible Spending Account annual maximum contribution will increase by $200 to $3,050 per plan year.
- For Health FSA plans with the optional Health FSA Carry Forward provision, there is an IRS limit on the amount of unused funds that can be carry forward every year. In 2023, the maximum Health FSA Carry Forward will be $610, up from $570 in 2022. Please note: your employer may impose a different carry forward limit. Please check your plan’s Summary Plan Description (SPD) to confirm the maximum carry forward amount.
Adoption Assistance FSA
The maximum amount that may be excluded from an employee’s gross income under an Adoption Assistance FSA will increase from $14,890 to $15,950.
Commuter Plan – Parking & Transit Account
For 2023, the Parking & Transit Accounts will increase by $20 to $300.
Overview of Changes for 2023
Plan Type |
2022 Limits |
2023 Limits |
| Health Flexible Spending Account | $2,850 annual contribution | $3,050 annual contribution |
| Health FSA Carry Forward Maximum | $570 | $610 |
| Adoption Assistance Flexible Spending Account | $14,890 annual contribution | $15,950 annual contribution |
| Parking Plan | $280 monthly contribution | $300 monthly contribution |
| Transit Plan | $280 monthly contribution | $300 monthly contribution |
| Health Savings Account – Contribution Limit | $3,650 annual contribution for individual coverage/$7,300 for family coverage | $3,850 annual contribution for individual coverage/$7,750 for family coverage |
| Health Savings Account – Annual HDHP Minimum Deductible | $1,400 for individual coverage/$2,800 for family coverage | $1,500 for individual coverage/$3,000 for family coverage |
| Health Savings Account- Out-of-Pocket Maximums | $7,000 for individual coverage/$14,000 for family coverage | $7,500 for individual coverage/$15,000 for family coverage |
For more information, please refer to IRS Revenue Procedure 2022-38.
