Dependent Care Flexible Spending Account (DCFSA) over-contribution rules
If the employee’s combined dependent care FSA contributions nonetheless end up exceeding the $5,000 limit, the excess will be reported by the employee when filing the individual tax return (Form 1040). As part of the individual tax return, the employee will complete Form 2441.
What is the FSA carryover limit for 2021?
$550
IRS Notice 2020-33, issued on May 12 as part of COVID-19 relief, raised the amount of funds that health FSA plans can carry over for 2020 to $550, up from $, the maximum carryover amount remains $550.
How much of my FSA can I roll over to 2022?
2022 Health FSA Contribution Cap Rises to $2,850
| Health Flexible Spending Accounts (Includes limited-purpose FSAs) | 2022 | Change |
|---|---|---|
| Maximum carryover amount *The Consolidated Appropriations Act, 2021, allowed unlimited carryovers of health FSA balances into the next plan year for plan year 2021. | $570 | +20 (indexed amount) |
How much can I carry over in my FSA for 2022?
$570
A few months back, we went over the basics on flexible spending accounts (FSAs). For those who do not have access to an HSA (which requires being paired with a HDHP in order to be able to contribute new funds) – FSAs are an excellent alternative.