The IRS released the 2023 contribution limits for Mass Transit and Parking, Medical FSA, and Adoption Assistance in Revenue Procedure 2022-38. The limits are effective for plan years that begin on or after January 1, 2023.
2023 CONTRIBUTION LIMIT: MASS TRANSIT AND PARKING
Maximum Election: $300 / month (up from $280 / month in 2022)
2023 CONTRIBUTION LIMIT: MEDICAL FSA
Maximum Annual Limit: $3,050 (up from $2,850 in 2022)
Maximum Rollover Limit: $610
2023 CONTRIBUTION LIMIT: ADOPTION ASSISTANCE
Maximum Credit: $15,950 (up from $14,890 in 2022)
Adjust Your Tax-Free Limits
Would you like to adjust your tax-free limits for your Medical FSA for your plan year beginning January 1, 2023? Contact your BRI Rep!
NOTE: There is no requirement to increase Medical FSA. Employers must initiate a change. By contrast, mass transit, parking, and HSA limits will be updated automatically for elections intended on or after January 1, 2023.