Compliance Alert
IRS Releases 2022 Cost of Living Adjustments for Medical Flexible Spending Accounts and Other Qualified Employee Benefits


The IRS released IRS Revenue Procedure 2021-45 which provides the 2022 cost-of-living increases for certain employee benefits effective for plan years that begin on or after January 1, 2022:
 

Medical FSAs:
  • Maximum Medical FSA Election increases from $2750 to $2850. GDI will automatically update your plan if your current maximum is $2750.

  • Maximum Carryover on Medical FSAs increases from $550 to $570. GDI will automatically update your Carryover if your current Carryover is $550.


Dependent Care FSAs:
  • The annual maximum for Dependent Care FSAs is $5,000 or $2,500, depending upon federal tax filing status.


Parking and Transit Accounts:
  • The monthly maximum available under Transit and Parking Account plans increases from $270 to $280


Health Savings Accounts:
  • As a reminder, the annual 2022 maximum contributions for Health Savings Accounts are $3,650 (employee only) and $7,300 (family). The HSA Catch-up contribution remains steady at $1,000.



Client Service Team
Group Dynamic, Inc.
Group Dynamic, Inc. | www.gdynamic.com