IRS Issued Cost-of-Living Adjustments for 2022
The Internal Revenue Service (IRS) issued Revenue Procedure 2021-45, which set forth the annual inflation-adjusted amounts for various provisions of the Internal Revenue Code for tax year 2022. The revenue procedure provides adjustments for more than 60 tax provisions, including health flexible spending accounts under cafeteria plans and qualified small employer health reimbursement arrangements.
For health flexible spending arrangement contributions, the dollar limitation on voluntary employee salary reductions is $2,850. If the cafeteria plan allows carryover of unused amounts, the maximum carryover amount is $570. The revenue procedure states that for qualified small employer health reimbursement arrangements, the total amount of payments and reimbursements cannot exceed $5,450 for self-only coverage or $11,050 for family coverage.