The IRS has issued Notice 2021-61 and Revenue Procedure 2021-45 setting forth its annual employee benefit plan limitations for 2022. Key changes, placed in bold in the chart below, include the following:
- Code Section 402(g) limitation on elective deferrals increased from $19,500 to $20,500.
- Code Section 408(p) limitation on elective deferrals for SIMPLE retirement account plans increased from $13,500 to $14,000.
- Code Section 415(c) maximum annual additions increased from $58,000 to $61,000.
- Compensation limit under Code Section 401(a)(17) increased from $290,00 to $305,000.
- HDHP Out of Pocket Maximum increased from $7,000 to $7,050 for self-only coverage and from $14,000 to $14,100 for family coverage.
- HSA Maximum Contribution Limit increased from $6,000 to $3,650 for self-only coverage and from $7,200 to $7,300 for family coverage.
- All adoption assistance limits and thresholds have increased.
- All QSEHRA and Archer MSA limits increased.
- Parking and transit fringe benefit contribution limits increased from $270 to $280 per month.
| 2022 | 2021 | 2020 | |
| 401(k) Plan Limits | |||
| Elective Deferrals | |||
| Maximum Elective Deferrals for 401(k) Plans | $20,500 | $19,500 | $19,500 |
| Maximum Elective Deferrals for SIMPLE 401(k) Plans | $14,000 | $13,500 | $13,500 |
| Maximum Catch-Up Contribution Limits for 401(k) Plans | $6,500 | $6,500 | $6,500 |
| Maximum Catch-Up Contribution Limits for SIMPLE 401(k) Plans | $3,000 | $3,000 | $3,000 |
| Annual Additions | |||
| Code Section 415(c) Limit | $61,000 | $58,000 | $57,000 |
| Compensation | |||
| Code Section 401(a)(17) Limit | $305,000 | $290,000 | $285,000 |
| Cafeteria Plan Limits | |||
| Health Flexible Spending Accounts | |||
| Maximum Salary Reduction | $2,850 | $2,750 | $2,750 |
| Maximum Carryover to Next Plan Year | $570 | $550 | $500 |
| Dependent Care Assistance Plan | |||
| Maximum Contribution Amount | $5,000 ($2,500 if married filing separately) | $5,000 ($2,500 if married filing separately) | $5,000 ($2,500 if married filing separately) |
| Deemed Income of Spouse Incapable of Self-Care or Full-Time Student |
$250 a month with 1 qualifying individual $500 a month with 2 or more qualifying individuals |
$250 a month with 1 qualifying individual $500 a month with 2 or more qualifying individuals |
$250 a month with 1 qualifying individual $500 a month with 2 or more qualifying individuals |
| Health Savings Account (HSA) | |||
| High Deductible Health Plan (HDHP) Minimum Annual Deductible |
$1,400 for self-only $2,800 for family |
$1,400 for self-only $2,800 for family |
$1,400 for self-only $2,800 for family |
| HDHP Out-of-Pocket Maximum |
$7,050 for self-only $14,100 for family |
$7,000 for self-only $14,000 for family |
$6,900 for self-only $13,800 for family |
| HSA Maximum Contribution Limit |
$3,650 for self-only $7,300 for family |
$3,600 for self-only $7,200 for family |
$3,550 for self-only $7,100 for family |
| HSA Catch-Up Contribution Limit | $1,000 | $1,000 | $1,000 |
|
Highly Compensated Employee (HCE) and Key Employee Threshold *Thresholds are the same across testing and limits for various plans |
|||
| HCE Threshold | $135,000 | $130,000 | $125,000 |
| Key Employee Threshold |
$200,000 for officer group $150,000 for more than 1% owner |
$185,000 for officer group $150,000 for more than 1% owner |
$185,000 for officer group $150,000 for more than 1% owner |
| Consumer-Driven Health Care Limits | |||
| Excepted Benefit Health Reimbursement Accounts | |||
| Maximum Newly Available Benefit | $1,800 | $1,800 | $1,800 |
| Qualified Small Employer Health Reimbursement Account (QSEHRA) Limits |
$5,450 for single $11,050 for family |
$5,300 for single $10,700 for family |
$5,250 for single $10,600 for family |
| Archer Medical Savings Accounts (MSAs) | |||
| Contributions Limits – Single |
$1,593 min. $2,405 max. |
$1,566 min. $2,340 max. |
$1,527.50 min. $2,307.50 max. |
| Contribution Limits – Family |
$3,713 min. $5,550 max. |
$3,600 min. $5,362.50 max. |
$3,562.50 min. $5,325 max. |
| Health Plan Deductible – Single |
$2,450 min. $3,700 max. |
$2,400 min. $3,600 max. |
$2,350 min. $3,550 max. |
| Health Plan Deductible – Family |
$4,950 min. $7,400 max. |
$4,800 min. $7,150 max. |
$4,750 min. $7,100 max. |
| HDHP Out-of-Pocket Maximum |
$4,950 for single $8,750 for family |
$4,800 for single $8,750 for family |
$4,750 for single $8,650 for family |
| Fringe Benefits Limits | |||
| Adoption Assistance | |||
| Maximum Exclusion for Employer-Provided Adoption Assistance | $14,890 | $14,400 | $14,300 |
| Maximum Exempt from Phased Reduction of Exclusion | $223,410 | $216,660 | $214,520 |
| Maximum Allowable for Exclusion and Credit | $263,410 | $256,660 | $254,520 |
| Educational Assistance | |||
| Maximum Income Exclusion | $5,250 | $5,250 | $5,250 |
| Transportation Fringe Benefits | |||
| Parking | $280 a month | $270 a month | $265 a month |
| Transit Passes & Vanpooling | $280 a month | $270 a month | $265 a month |
| FICA Taxable Wage Base | |||
| Social Security | |||
| Maximum Taxable Earnings | $147,000 | $142,800 | $137,700 |
| Employer Tax Rate | 6.2% | 6.2% | 6.2% |
| Employee Tax Rate | 6.2% | 6.2% | 6.2% |
| Medicare | |||
| Employer Tax Rate | 1.45% | 1.45% | 1.45% |
| Employee Tax Rate | 1.45% | 1.45% | 1.45% |