PSA: 2022 Updates for your FSA and HSA
As the clock inches closer to midnight, and the ball is about to drop, thinking about your flexible spending account likely is the last thing on your mind. However, with all the changes made this year, perhaps you should (at least read this article).
Typically, your employer who administers your FSA account may give you the ability to roll over a up to $550 of your balance to the new year. You’ll have to spend it within a two-and-a-half-month grace period. And hopefully, you don’t waste until the last minute again!
According to the Society for Human Resource Management (SHRM), this year, your employer may have allowed you to roll over your entire FSA balance to the new year. This is due to a law passed by our friends over in Congress that effected 2020 and 2021 year end balances. If you haven’t heard from your employer, ask them about it!
Other 2021 FSA / HSA News
The IRS released their contribution limits for 2022 regarding flexible spending accounts and health savings accounts.
For FSAs, the limit is now $2850 up from $2750, and the maximum carry amount is $570. This limit also applies to limited-purpose FSAs. These types of FSAs are unfortunately restricted to strictly vision and dental care.
The IRS also released 2022 HSA Contribution limits earlier this year. The individual HSA contribution limit is $3,650 and the family contribution limit will be $7,300.
With those extra dollars, I have my eyes on upgrading my skin care routine and buy some Supergoop! What will you buy in 2022?