![]() $550, an increase of $50 from the original 2020 carryover limit. The limit also applies to limited-purpose FSAs that are restricted to dental and vision care services, which can be used in tandem with health savings accounts (HSAs).įor health FSA plans that permit the carryover of unused amounts, the maximum carryover amount for 2021 is Original article appears below: For 2021, the dollar limit for employee contributions to health flexible spending accounts (health FSAs), made pretax through salary reductions, remains IRS Clarifies Relief for FSA Carry-Overs.Appropriations Act Permits Midyear FSA Elections, Unlimited Carry-over Amounts Through 2021.The amendment may be retroactive as along as it is adopted no later than the last day of the calendar year following the year in which the amendment is effective. Roll over all unused amounts in these accounts from 2020 to 2021 and from 2021 to 2022.Įmployers may also allow employees to prospectively change their health or dependent care FSA contribution rates during 2021 without experiencing a permitted election-change event.Įmployers wishing to offer optional FSA relief provisions must amend their Section 125 cafeteria plan to incorporate the changes. 1, 2022Ĭonsolidated Appropriations Act signed into law at the end of 2020 allows employers that sponsor health or dependent care FSAs to permit participants to The provision raises the exclusion limits for the plan year beginning after Dec. Pretax contribution limit increases to $10,500 (up from $5,000) for single taxpayers and married couples filing jointly, and to $5,250 (up from $2,500) for married individuals filing separately. ![]() Stimulus Measure Raises 2021 Dependent Care FSA Limitsįor calendar year 2021, the dependent care flexible spending account (FSA) SHRM Online article 2022 Health FSA Contribution Cap Rises to $2,850. The deadline to submit Health Care/Limited Purpose 2021 claims is April 30, 2023.Update: For 2022 contribution limits for flexible spending accounts, transit benefits and adoption assistance, see the The maximum reimbursement for the child in the 2022 plan year is limited to the unused balance that was carried over from the 2021 plan year. You are able to continue to receive reimbursement in the 2022 plan year for a non-disabled child who reached age 13 during the 2021 plan year. If you did not elect a Dependent Care FSA account for 2022 during Open Enrollment, you will still receive the full rollover. The deadline to submit Health Care/Limited Purpose 2021 claims is April 30, 2023.Īll unused 2021 Dependent Care FSA funds are eligible to be rolled over into your 2022 Dependent Care FSA account. In order to be eligible for the Health Care or Limited Purpose FSA rollover, you must have elected a Health Care or Limited Purpose FSA account during Open Enrollment for 2022 and have an active account. Please refer 2024 Open Enrollment communications for details.īelow are changes that have been temporarily made to University’s FSA plans due to the passing of the Consolidated Appropriations Act for 2021.Īll of your unused Health Care or Limited Purpose FSA account balance from 2021 will be carried over to 2022 for use on eligible expenses for 2022. At the end of the year, employees may be able to roll-over some eligible funds. The maximum amount you may contribute in 2023 is $2,850 (minimum election is $100). A complete list of qualifying expenses can be found in IRS Publication 502. Once the Tier 1 Plan deductible has been met, you may also use your Limited Purpose FSA for qualified medical and prescription expenses. You may use your Limited Purpose FSA to reimburse qualified out-of-pocket dental and vision expenses. You are eligible to contribute to a Limited Purpose FSA if you are a benefit-eligible employee that enrolled in the HSA-Eligible Plan and are contributing to an HSA. Please refer to the 2024 Open Enrollment communications for details. ![]() Qualified expenses now include: over-the-counter medicine without needing a doctor’s prescription and all feminine hygiene products. The CARES (Coronavirus Aid Relief and Economic Security) Act, passed by Congress, has expanded covered expenses that you may use your FSA on. You may use your Health Care FSA to reimburse qualified out-of-pocket medical, dental, prescription, or vision expenses. Enrolled in the HSA-Eligible Plan and are not contributing to an HSA (if you are contributing to an HSA, see Limited Purpose FSA below).You are eligible to contribute to a Health Care FSA if you are a benefit-eligible employee that:
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