Staff might contribute as much as $3,050 to versatile spending accounts in 2023, the IRS introduced Tuesday.
The replace represents a “comparatively massive enhance” — a $200 bounce — over this 12 months’s $2,850, in response to Lisa Myers, director of shopper providers, advantages accounts, at advisory agency WTW. The shift is because of excessive inflation ranges, Myers mentioned in a press release offered to HR Dive; the earlier adjustment elevated the cap by $100.
The brand new restrict applies to plan years starting in 2023, Meyes continued. And for cafeteria plans that allow the carryover of unused quantities, the utmost carryover quantity is $610 — a rise of $40, the IRS mentioned.
The IRS discover additionally introduced that the up to date month-to-month cap on commuter profit contributions shall be $300 — a $20 enhance — and the utmost credit score for adoption help will enhance greater than $1,000 to $15,950.