On October 18, 2022, the IRS released Revenue Procedure 2022-38 announcing the adjusted contribution limits for health flexible spending accounts (Health FSAs), among other limits, for the 2023 calendar year.
The 2023 limits, as compared to the 2022 limits, are outlined below:
| 2023 | 2022 | |
| Health FSA | $3,050 | $2,850 |
| Maximum Health FSA Carryover Amount | $610 | $570 |
| Dependent Care FSA | $5,000 | $5,000 |
| Qualified Commuter/Parking Benefits | $300 | $280 |
| Adoption Assistance Tax Credit | $15,950 | $14,890 |
| Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) | $5,850 (single) / $11,800 (family) | $5,450 (single) / $11,050 (family) |
In addition, the annual changes to the Affordable Care Act (ACA) maximum out-of-pocket limits were released earlier this year by the Department of Health and Human Services (HHS) in the Notice of Benefit and Payment Parameters, and are shown below:
| 2023 | 2022 | |
| ACA Maximum Out-of-Pocket Limit | $9,100 (single)/ $18,200 (family) | $8,700 (single)/ $17,400 (family) |
As a reminder, the 2023 limits released this May in IRS Revenue Procedure 2022-24 for health savings accounts (HSAs) and high deductible health plans (HDHPs) are provided in our blog, Sequoia Foreword: IRS Releases 2023 HSA & HDHP Limits
Employer Action Item
- Employers should ensure their systems, documents, and enrollment materials are updated with the 2023 limits.
- Employers should notify their employees of the new 2023 limits.
Additional Resources
- IRS Revenue Procedure 2022-38
- IRS Revenue Procedure 2022-24
- HHS Notice of Benefit and Payment Parameters
- Sequoia Foreword: IRS Releases 2023 HSA & HDHP Limits
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