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2023 Contribution Limits Announced for FSA and Commuter

2023 Limits

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?

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.

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