Does the healthcare FSA contribution max for 2022 reset to the max with each employer (tied to employer) or is the limit tied to the tax year?

[LisaLisa_98037]

I elected $2,000 for my healthcare FSA with my original employer A for 2022 (and used it all). I quit my job in March 2022 and starting a new job with employer B in April 2022. I want to utilize healthcare FSA with employer B- what is the max I can elect with employer B?

[Mike9241]

ask employer B.

[AliciaP1]

The IRS FSA contribution limit for 2022 is $2,850.  If you received the full $2,000 benefit (distribution) from your first employer, you can contribute and receive the benefit of $850 from your new employer.

@LisaLisa_98037

[LisaLisa_98037]

Thanks so much for getting back to me Alicia, but I am not sure as I keep seeing things online saying the FSA is attached to the employer instead.  Also, I happened upon this, I wonder if it still applies in 2022? it seems to indicate in last line if you have more than 1 employer you can elect up to the max under each.

https://www.irs.gov/irb/2012-26_IRS

"All employers that are treated as a single employer under § 414(b), (c), or (m), relating to controlled groups and affiliated service groups, are treated as a single employer for purposes of the $2,500 limit. If an employee participates in multiple cafeteria plans offering health FSAs maintained by members of a controlled group or affiliated service group, the employee’s total health FSA salary reduction contributions under all of the cafeteria plans are limited to $2,500 (as indexed for inflation). Section 125(g)(4). However, an employee employed by two or more employers that are not members of the same controlled group may elect up to $2,500 (as indexed for inflation) under each employer’s health FSA."

[LisaLisa_98037]

Thanks, I don't think they have a full understanding of it 

[DawnC]

Health FSAs are employer-established benefit plans. These may be offered in conjunction with other employer-provided benefits as part of a cafeteria plan. Employers have the flexibility to offer various combinations of benefits in designing their plans.

For the health FSA to maintain tax-qualified status, employers must comply with certain requirements that apply to cafeteria plans. For example, there are restrictions for plans that cover highly compensated employees and key employees. The plans must also comply with rules applicable to other accident and health plans. Chapters 1 and 2 of Pub. 15-B, Employer’s Tax Guide to Fringe Benefits, explain these requirements.