2022 FSA Contribution Limit
For 2022, the FSA Contribution Limit is $2,850 (Health FSA salary reduction limit) and $570 (Maximum carryover).
Effective 2022-01-01Source: Rev. Proc. 2021-45 (IRS)Verified 2026-09-01
Compared with 2021
| Item | 2021 | 2022 | Change |
|---|---|---|---|
| Health FSA salary reduction limit | $2,750 | $2,850 | +$100 (+3.6%) |
| Maximum carryover | -1 | $570 | - |
- the Consolidated Appropriations Act let a health FSA carry over every unused dollar from a plan year ending in 2020 to one ending in 2021, and from 2021 to one ending in 2022, so Publication 969 prints that relief in the place the carryover cap used to occupy
Who it applies to
Employees who participate in an employer-sponsored cafeteria plan that includes a health flexible spending arrangement, and the employers that sponsor those plans.
What changed this year, and why
For taxable years beginning in 2022, the IRS set the health flexible spending arrangement (FSA) salary reduction contribution limit at $2,850 and the maximum carryover of unused amounts at $570, under § 125(i).
Common questions
- What is the maximum amount an employee can contribute to a health FSA through salary reduction in 2022?
- For taxable years beginning in 2022, the limit on voluntary employee salary reductions for contributions to a health FSA is $2,850.
- Can unused health FSA amounts be carried over to the next year?
- If the cafeteria plan permits it, the maximum carryover of unused health FSA amounts is $570 for plan years beginning in 2022. Whether carryover is allowed depends on the terms of the individual plan.
Self-employed people cannot have a health FSA
Health Flexible Spending Accounts are employer-established benefit plans, typically offered as part of a cafeteria plan alongside other employer-provided benefits. Because they are tied to an employer's plan, self-employed individuals - such as sole proprietors, independent contractors, and partners in a partnership - cannot establish or participate in a health FSA. Only employees whose employers choose to offer such a plan may participate. Additionally, certain limitations may apply if you are a highly compensated participant or a key employee under the plan's nondiscrimination rules. If you are self-employed and want to set aside pre-tax dollars for medical costs, you must look to other options such as a Health Savings Account (if you have a qualifying high-deductible health plan), because the health FSA route is closed to you.
Health FSAs are employer-established benefit plans. These may be offered in conjunction with other em- ployer-provided benefits as part of a cafeteria plan. Em- ployers have flexibility to offer various combinations of benefits in designing their plans. Self-employed persons aren’t eligible for FSAs.
Publication 969 (2022), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
You elect once a year and cannot change it at will
At the start of each plan year, you choose how much you want to contribute to your health FSA through a salary reduction agreement. Your employer then deducts that amount from your pay in equal installments over the course of the year, typically every payday. Once you have made this election, it is irrevocable for the rest of the plan year. You may change or cancel your contribution election only if both the Internal Revenue Service rules and your employer's specific plan terms expressly permit it. For example, some plans allow a mid-year change if you experience a qualifying life event such as marriage, birth of a child, or a change in employment status that affects your eligibility. Absent one of those limited exceptions, your election stands for the entire year, so you should base your contribution amount on a careful estimate of your expected qualified medical expenses. For 2022, the maximum salary reduction contribution is $2,850.
You can change or re- voke your election only if specifically allowed by law and the plan.
Publication 969 (2022), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The whole election is available on day one
Under a health FSA, the entire amount you elect to contribute for the year is available to you from the first day of the coverage period. This is sometimes called the "uniform coverage" rule. For example, if you elect to contribute $2,850 for the year, you can be reimbursed for the full $2,850 even if you incur a large medical expense early in the year before you have actually contributed that much through payroll deductions. The employer must bear the risk that you will leave the job before completing all the planned salary reductions. This means the FSA is not a "spend what you have saved so far" account; rather, the full annual election is in effect from day one. The trade-off is the use-it-or-lose-it rule: amounts that remain unused at the end of the plan year (subject to any grace period or carryover the plan may offer) are forfeited. This uniform coverage rule is one of the key differences between an FSA and a Health Savings Account.
You must be able to receive the maximum amount of reimbursement (the amount you have elected to contribute for the year) at any time during the coverage period, regardless of the amount you have actually contributed.
Publication 969 (2022), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
Use it or lose it, and the two escapes from it
Money left in a health FSA at the end of the plan year is generally forfeited: it does not roll forward and your employer cannot refund it. There are two escapes and a plan may offer one of them, not both. A grace period gives up to 2 1/2 months after the plan year ends in which new expenses can still be paid from last year's money. A carryover instead lets a limited amount survive into the next year - $570 for a plan year beginning in 2022 - and the rest is still lost. Which one you have is in your plan documents, not in the law, so check before December rather than after. It also matters when you set the election against the $2,850 limit: with neither feature, the year end is a hard deadline.
FSAs are generally "use-it-or-lose-it" plans. This means that amounts in the account at the end of the plan year can't generally be carried over to the next year. However, the plan can provide for either a grace period or a carry- over. The plan can provide for a grace period of up to 2 1/2 months after the end of the plan year.
Publication 969 (2022), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
What the money may be spent on, and what it may not
Health FSA funds can only be used to reimburse qualified medical expenses incurred by you, your spouse, all dependents you claim on your tax return, and your child under age 27 at the end of your tax year. Qualified medical expenses are generally those expenses that would be deductible as medical expenses on Schedule A if you itemized deductions, such as doctor visits, prescription medications, and certain medical equipment. However, there are specific expenses that cannot be reimbursed from a health FSA. You cannot receive distributions for amounts paid for health insurance premiums, amounts paid for long-term care coverage or expenses, and amounts that are covered under another health plan. Additionally, you cannot deduct as an itemized deduction on Schedule A any qualified medical expenses that are equal to the reimbursement you receive from the FSA. This prevents a double tax benefit - either you get tax-free reimbursement from the FSA, or you claim an itemized deduction, but not both for the same expense.
Qualified medical expenses are those incurred by the following persons. 1. You and your spouse. 2. All dependents you claim on your tax return. 3. Any person you could have claimed as a dependent on your return except that: a. The person filed a joint return; b. The person had gross income of $4,400 or more; or c. You, or your spouse if filing jointly, could be claimed as a dependent on someone else’s 2022 return. 4. Your child under age 27 at the end of your tax year. You can’t receive distributions from your FSA for the following expenses. • Amounts paid for health insurance premiums. • Amounts paid for long-term care coverage or expen- ses. • Amounts that are covered under another health plan.
Publication 969 (2022), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2021-45 (IRS)
- Health FSA salary reduction limit
For taxable years beginning in 2022, the dollar limitation under § 125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $2,850.
- Maximum carryover
If the cafeteria plan permits the carryover of unused amounts, the maximum carryover amount is $570.