2023 FSA Dependent Care and Commuter Contribution Limits Announced

For the taxable years beginning in 2023, the dollar limitation for employee salary reductions for contributions to health flexible spending arrangements increases to $3,050.

For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount is $610, an increase of $40 from taxable years beginning in 2022.

For commuter benefits, the monthly limitation for the qualified transportation fringe benefit and the monthly limitation for qualified parking increases to $300, up $20 from the limit for 2022.

For dependent care, the annual limits will remain $5,000 for single taxpayers and married couples filing jointly or $2,500 for married people filing separately.