The IRS released the 2022 contribution limits for Mass Transit, Parking, Medical FSA, and Adoption Assistance in Revenue Procedure 2021-45. The limits are effective for plan years that begin on or after January 1, 2022.
2022 CONTRIBUTION LIMIT: MASS TRANSIT AND PARKING
Maximum Election: $280 / month (up from $270 / month in 2021)
2022 CONTRIBUTION LIMIT: MEDICAL FSA
Maximum Annual Limit: $2,850 (up from $2,750 in 2021)
Maximum Rollover Limit: $570
2022 CONTRIBUTION LIMIT: ADOPTION ASSISTANCE
Maximum Credit: $14,890 (up from $14,440 in 2021)
Click here to see the 2022 HSA Limits released earlier this year.
The IRS allowed a temporary increase in the Dependent Care FSA plan maximum from $5,000 (single or married filing jointly) to $10,500 for the 2021 tax year with ARPA. Since the limit was temporary, the limit is reduced back to $5,000.
Would you like to adjust your tax-free limits for your Medical FSA and/or Adoption Assistance for your plan year beginning January 1, 2022?
NOTE: There is no requirement to increase Medical FSA or Adoption Assistance limits. Employers must initiate a change. By contrast, mass transit, parking, and HSA limits will be updated automatically for elections intended on or after January 1, 2022.
Employees currently enrolled in a plan may contact Participant Services at 1-800-473-9595, Monday-Friday, 8am to 8pm with any questions regarding 2022 pre-tax limits.
Looking to information on current limits? Find it here:
