From a planning standpoint, the beginning of the year is important for employers in many ways. It also marks a new beginning for certain benefit components–including several account limits set by the IRS. The IRS announced 2022 changes to health savings accounts back in May, but it only recently unveiled annual changes to flexible savings accounts and 401(k)s. From contribution limits to out-of-pocket amounts, here are 11 figures that employers need to know–all of which come into play in January.
$20,500: 401(k) pretax contribution limits
The employee contribution limit for 401(k) plans is increasing to $20,500 in 2022, up from $19,500 in 2020 and 2021, according to the IRS. It’s good news for employees as the IRS did not increase employee contribution limits for 401(k)s for the last two years.
$6,500: 401(k) catch-up contribution limit
Catch-up deposits for savers 50 and older will remain at $6,500, the IRS announced.
$3,650: Annual HSA contribution limit for individuals
Health savings account contribution limits for 2022 are increasing $50 for self-only coverage–from $3,600 to $3,650.
$7,300: HSA contribution limit for family coverage
Those with family plans will be able to stash up to $7,300 in their health savings account in 2022–up from $7,200 in 2021.
$1,000: HSA catch-up contributions
Employees 55 and older can contribute an extra $1,000 to their health savings account in 2022. The amount remains unchanged.
$1,400: HDHP minimum deductible for individuals
Minimum annual deductible limits are unchanged from 2021. For 2022, plans will remain with a minimum annual deductible of $1,400 for individual coverage.
$2,800: HDHP minimum deductible for family
The minimum annual deductible for a qualifying high-deductible health plan for family coverage will remain unchanged at $2,800.
$7,050: HDHP maximum out-of-pocket amounts for individuals
Out-of-pocket maximums increased to $7,050 for individual coverage in 2022, up from $7,000 in 2021.
$14,100: HDHP maximum out-of-pocket amounts for family
Deductibles, copayments and other amounts that do not include premiums will have a maximum limit of $14,100 for family coverage, up $100 from 2021.
$2,850: FSA contribution limit
For 2022, the dollar limit for employee contributions to flexible spending accounts, made pretax through salary reductions, is rising to $2,850, up from $2,750.
$570: FSA carryover amount limit
For health FSA plans that permit the carryover of unused amounts, the maximum carryover amount for 2022 is $570, up from $550.