The Inside Income Service has introduced cost-of-living changes that have an effect on limitations on certified retirement plans and well being plans. The will increase take impact on January 1, 2022.
Worker contribution limits (elective deferrals) for 401(okay), 403(b), and most 457 plans will enhance, however the catch-up contribution limits for workers age 50 and over stay unchanged. The annual profit restrict for outlined profit plans and the contribution restrict for outlined contribution plans will enhance barely.
The IRS issued the 2022 contribution limits for Well being Financial savings Accounts (HSAs) and most out-of-pocket quantities for Excessive Deductible Well being Plans (HDHPs) in Might 2021, though minimal deductibles for HDHPs remained unchanged. A previous consumer alert indicated that well being Versatile Spending Account (FSA) contribution limits would additionally stay unchanged, however on November 10 the IRS launched up to date FSA limits for 2022 (growing by $100, to $2,850). In gentle of the late launch date, many employers retained the 2021 restrict of $2,750, to facilitate 2022 open enrollment. The FSA carryover restrict continues to be 20% of the annual contribution restrict, though particular COVID-19 reduction offers employers the choice to permit workers to hold over their unspent 2021 FSA steadiness into 2022. See IRS Notice 2021-15.
A abstract of the bounds and thresholds is supplied within the desk beneath.
|
Retirement Plan Limits |
2021 |
2022 |
|
401(okay), 403(b), 457 Elective Deferral Restrict |
$19,500 |
$20,500 |
|
Catch-Up Contribution Restrict (age 50-plus) |
$6,500 |
$6,500 |
|
Outlined Benefit Plan Annual Benefit Restrict |
$230,000 |
$245,000 |
|
Outlined Contribution Plan Annual Contribution Restrict |
$58,000 |
$61,000 |
|
Annual Compensation Restrict |
$290,000 |
$305,000 |
|
Extremely Compensated Worker Threshold |
$130,000 |
$135,000 |
|
Key Worker Threshold |
$185,000 |
$200,000 |
|
IRA Contribution Restrict |
$6,000 |
$6,000 |
|
IRA Catch-Up Contribution Restrict (age 50-plus) |
$1,000 |
$1,000 |
|
Well being Plan Limits |
2021 |
2022 |
|
Well being FSA Contribution Restrict |
$2,750 |
$2,850 |
|
Well being FSA Carryover Restrict |
$550* |
$570 |
|
HSA Contribution Restrict (Particular person) |
$3,600 |
$3,650 |
|
HSA Contribution Restrict (Household) |
$7,200 |
$7,300 |
|
HSA Catch-Up Contribution Restrict (age 55-plus) |
$1,000 |
$1,000 |
|
HDHP Minimal Deductible (Particular person) |
$1,400 |
$1,400 |
|
HDHP Minimal Deductible (Household) |
$2,800 |
$2,800 |
|
HDHP Most Out-of-Pocket Quantity (Particular person) |
$7,000 |
$7,050 |
|
HDHP Most Out-of-Pocket Quantity (Household) |
$14,000 |
$14,100 |
*Particular COVID-19 reduction offers employers the choice to permit workers to hold over their unspent 2021 FSA steadiness into 2022.
Do not forget that authorized rules might change and range broadly of their software to particular factual circumstances. You need to seek the advice of with counsel about your particular person plan, any plan amendments, and participant notices.