2022 Health FSA Contribution Cap Rises to $2,850

Employees can put an extra $100 into their health care flexible spending accounts (health FSAs) next year, the IRS announced, as the annual contribution limit rises to $2,850, up from $2,750. With open enrollment for the 2022 benefits year under way at many organizations, the increase may have come too late for some employees to take advantage of it.

If the employer’s plan permits the carryover of unused health FSA amounts, the maximum carryover amount rises to $570, up from $550, but COVID-19 relief extends the allowable carryover amount further.

Tax-exclusion limits for employer-sponsored commuting benefits and adoption assistance programs are also rising for 2022, the IRS announced in Revenue Procedure 2021-45.