![]() ![]() There’s a caveat with all of the temporary changes, however. To see how much you can save in taxes with an F.S.A., you can try using online calculators, like the one at, which sells F.S.A.-eligible products. “It’s OK to lose a bit of money,” he said, “if you’re getting a tax break.” But because paycheck deductions are made pretax, employees shouldn’t fret too much about leaving behind relatively small balances, said Paul Fronstin, director of health research at the institute. was just under $1,200 in 2019, according to the Employee Benefit Research Institute, which also found that nearly half of participants have forfeited all or part of their contributions. The average employee contribution to an F.S.A. “Employees need to know their balances,” she said.Įmployers have generally said they are seeking to hold the line on increases in health insurance costs for employees next year, given a challenging job market because of the pandemic. With annual open enrollment underway at many employers, workers should log on to their accounts or check with their employer to see how much money is available and decide whether to tweak their paycheck deductions for next year, Ms. It depends how much you think you’ll need in 2022. Some workers, however, may choose to contribute less money next year if they have an extra cushion from a carry-over. hasn’t confirmed the maximum for 2022, Ms. The limit set by the Internal Revenue Service was $2,7, but employers may set lower limits for their workers. You can also contribute up to the maximum allowed in payroll deductions next year. So if you had $1,000 in your account at the end of this year, you could carry it all over into 2022. So the federal government allowed employers to grant workers even more leeway, by extending the usual deadlines or letting workers carry more of their account balances into next year.Įmployers may allow a “full” carry-over of remaining balances for next year - up to the total balance in the worker’s F.S.A. About three-fourths of accounts offered one of those options in 2019, according to the nonpartisan and nonprofit Employee Benefit Research Institute.īut during the pandemic, many workers skipped in-person doctor visits or delayed nonemergency treatments and didn’t use the money in their F.S.A.s. Employers already had the option of offering wiggle room, like allowing workers to carry some of the money in their accounts into the new year or giving grace periods of a couple of months after the deadline for spending the money. ![]()
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