IRS Releases 2022 Benefit Plan Limits and Thresholds

The Inside Income Service lately 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 improve, 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 improve barely. 

The IRS elevated 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 Could of 2021, though minimal deductibles for HDHPs and limits on contributions to well being Versatile Spending Accounts (FSAs) remained unchanged. The FSA carryover restrict continues to be 20% of the annual contribution restrict.

A abstract of the bounds and thresholds is offered within the desk under.

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

$2,750

Well being FSA Carryover Restrict

$550

$550

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

 

Do not forget that authorized ideas might change and fluctuate broadly of their utility to particular factual circumstances. It’s best to seek the advice of with counsel about your particular person plan, any plan amendments, and participant notices.

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