Compliance Alert: 2023 Health FSA Inflation Adjustments

On October 18, 2022, the Internal Revenue Service issued Revenue Procedure 2022-38 that sets forth various 2023 tax-related limits that have been adjusted for inflation.  The table below identifies updates to the 2023 health and fringe benefit plan limits addressed in the notice.




Maximum Annual Employee Contribution to a Health Flexible Spending Account (Health FSA)



Health FSA Carryover Limit



Adoption Assistance Programs



Maximum Annual Employer Contribution to Qualified Small Employer HRA (QSEHRA)


(self-only coverage)


(family coverage)


(self-only coverage)


(family coverage)

Maximum Monthly Benefit for Qualified Transit Passes, Van Pool Services, and Qualified Parking





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About the Authors  This alert was prepared for Generous Benefits by MZQ Consulting, a Benefits Compliance firm that specializes in Affordable Care Act Reporting and numerous other employee benefits-related compliance services. Our mission is to help people navigate the complex world of employee benefits compliance through our deep expertise and superb client service.

The information provided in this alert is not, is not intended to be, and shall not be construed to be, either the provision of legal advice or an offer to provide legal services, nor does it necessarily reflect the opinions of the agency, our lawyers or our clients.  This is not legal advice.  No client-lawyer relationship between you and our lawyers is or may be created by your use of this information.  Rather, the content is intended as a general overview of the subject matter covered.  This agency and MZQ Consulting are not obligated to provide updates on the information presented herein.  Those reading this alert are encouraged to seek direct counsel on legal questions.

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