The IRS released cost-of-living-adjustments (COLAs) for 2023 reflecting any increases in excludable transportation fringes and the flexible spending arrangement (FSA) deferral limit, among other changes [Rev. Proc. 2022-38, 10-18-22].
For 2023, the amounts that may be excluded from gross income for employer-provided qualified transportation fringe benefits and qualified parking increase to $300 per month ($280 in 2022).
For plan years beginning in 2023, the dollar limitation for voluntary employee salary reductions for contributions to health FSAs increases to $3,050 ($2,850 in 2022). For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount increases to $610 ($570 in 2022).
Courtesy of the APA – Jyme Mariani, Esq.