16 November 2021 • 13 minute read
IRS increases 2022 flexible spending and transportation benefit plan limits: two short charts
The Internal Revenue Service (IRS) recently announced 2022 increases to the health flexible spending account (FSA) contribution limit and the transportation fringe benefit limit. This alert complements our November 11, 2021 Alert, “2022 retirement and benefit plan limits explained in 5 short charts.”
This alert sets forth the updated flexible spending account and transportation fringe benefit limits for 2022, as compared to the 2021 limits, in the charts below. Also included below are the dependent care FSA limits for 2022.
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| Flexible spending account limits | 2021 | 2022 |
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| Health FSA | $2,750 Max carry-over to following plan year $550 | $2,850 Max carry-over to following plan year $570 |
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| Dependent care FSA* | Family: $10,500** Married, Filing Separately $5,250 | Family: $5,000** Married, Filing Separately $2,500 |
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| ** Married and filing a joint return or single parent filing | ||||||||||||||
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| Transit and parking fringe benefits limit | 2021 | 2022 |
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| Transit/parking | $270/month | $280/month |
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Action items for employers
- Update any plan documents that identify the annual limitations.
- Update participant communications as the limits may impact important benefit elections for 2022.
- Update Human Resource Information Systems (HRIS) and/or payroll systems with new limitations for administration, recordkeeping and tax reporting.
- Ensure all vendor data feeds are updated to comply with the new limits.
For more information, please contact any of the members of our Employee Benefits and Executive Compensation group.
Sherry Klenk is a consultant with DLA Piper’s Employee Benefits and Executive Compensation group, based in Chicago. Reach her at sherry.klenk@dlapiper.com.