The IRS has announced 2023 cost-of-living adjustments for health flexible spending accounts (FSAs) and other tax provisions related to consumer-driven plans. The maximum voluntary employee salary reduction contribution to Health FSA gets a $200 bump, reflecting current inflation.
Similarly, maximum reimbursements from a qualified small employer* health reimbursement arrangement (QSEHRA) and monthly limits on fringe benefit exclusions for qualified transportation will see higher increases than usual.
Health FSA maximums also apply to limited-purpose FSAs for dental and vision care services, tied to a health savings account (HSA).
MedBen clients with questions regarding these adjustments are welcome to contact Director of Administration Sharon A. Mills at (800) 423-3151, Ext. 438 or smills@medben.com.
* A “small employer” is defined as having fewer than 50 full-time employees.