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Many employee benefits are subject to annual dollar limits which are periodically updated for inflation by the IRS. Most of the limits will increase, although some limits remain the same for 2022.
|
Limit |
2022 |
Change |
|
HSA Contribution Limit |
||
|
Self-only |
$3,650 |
Up $50 |
|
Family |
$7,300 |
Up $100 |
|
Catch-up contributions* |
$1,000 |
No change |
|
HDHP Minimum Deductible |
||
|
Self-only |
$1,400 |
No change |
|
Family |
$2,800 |
No change |
|
HDHP Out-of-Pocket Deductible |
||
|
Self-only |
$7,050 |
Up $50 |
|
Family |
$14,100 |
Up $100 |
|
Health FSA |
||
|
Limit on employees’ pre-tax contributions |
$2,850 |
Up $100 |
|
Carryover limit |
$570 |
Up $20 |
|
Dependent Care FSA* |
||
|
Tax exclusion |
$5,000 ($2,500 if married and filing taxes separately) |
Return to traditional rules |
|
Transportation Fringe Benefits (Monthly Limits) |
||
|
Transit pass and vanpooling (combined) |
$280 |
Up $10 |
|
Parking |
$280 |
Up $10 |
|
401(k) Contributions |
||
|
Employee elective deferrals |
$20,500 |
Up $1,000 |
|
Catch-up contributions |
$6,500 |
No change |
|
Adoption Assistance Benefits |
||
|
Tax exclusion |
$14,890 |
Up $450 |
*This limit is not generally subject to annual adjustment for inflation. However, for 2021, the American Rescue Plan Act (ARPA) increased the limit to $10,500 (or $5,250 for married individuals filing separately) due to the COVID-19 pandemic.
Employers should update their benefit plan designs and communicate the new limits to their employees. Download the bulletin for more details.
National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.
