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2023 FSA commuter limits
Benefits

2023 FSA limits, commuter limits, and more are now available

October 19, 2022

The IRS released 2023 contribution limits for medical flexible spending accounts (medical FSAs), commuter benefits, and more as part of Revenue Procedure 2022-38. Limits are adjusted annually to reflect inflation. 

2023 medical FSA contribution limits (including limited and combination FSAs)

2022 2023
$2,850 per year $3,050 per year

2023 medical FSA carryover

2022 2023
$570 per year $610 per year

2023 commuter benefits contribution limits

2022 2023
$280 per month $300 per month

2023 adoption assistance limits

2022 2023
$14,890 per year $15,950 per year

The maximum amount that may be excluded from an employee’s gross income for the adoption of a special needs child through an adoption assistance program is $15,950. That amount is the same as what may be excluded from that employee’s gross income for expenses incurred by an employer for qualified adoption expenses within the program.

The available adoption credit begins to phase out for taxpayers with modified adjusted gross income in excess of $239,230 and is completely phased out for taxpayers with modified adjusted gross income of $279,230 or more.

2023 qualified small employer health reimbursement arrangement (QSEHRA) limits

QSEHRA 2022 2023
Self-only $5,450 per year $5,850 per year
Family $11,050 per year $11,800 per year

2023 FSA commuter limits

Previously announced
2023 health savings account (HSA) limits

HSA 2022 2023
Self-only $3,650 per year $3,850 per year
Family $7,300 per year $7,750 per year

2023 HDHP amounts/limits

HDHP (self-only coverage) 2022 2023
Minimum deductible:  $1,400 $1,500
Maximum out-of-pocket limit:  $7,050 $7,500

 

HDHP (family coverage) 2022 2023
Minimum deductible:  $2,800 $3,000
Maximum out-of-pocket limit:  $14,100 $15,000

Also

2023 401(k) limits

2022 2023
$20,500 per year $22,500 per year

To recap:

  • The 2023 medical FSA contribution limit will be $3,050 per year, which is a $200 increase from 2022. 
  • Employers can allow employees to carry over $610 from their medical FSA for taxable years beginning in 2023, which is a $40 increase from 2022. 
  • The monthly commuter benefits limit in 2023 for mass transit and parking is $300 per month. 
  • Employer contribution limits for QSEHRAs are $5,850 for self-only and $11,800 for families. 
  • 2023 HSA contribution limits were previously announced by the IRS. The HSA limit is $3,850 for an individual and $7,750 for family. 

Would you like to learn more about medical FSAs? FSA Store’s Rida Wong shared eight things you should know about medical FSAs on a recent episode of Benefits Buzz.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

WEX receives compensation from some of the merchants identified in its blog posts. By linking to these products, WEX is not endorsing these products. 

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