Employee Benefit Plan Limits for 2022

Employee Benefit Plan Limits for 2022

Many employee benefits are subject to annual dollar limits that are periodically updated for inflation by the IRS. The following commonly offered employee benefits are subject to these limits:

High deductible health plans (HDHPs) and health savings accounts (HSAs);
Health flexible spending accounts (FSAs);
401(k) plans; and
Transportation fringe benefit plans.

The IRS typically announces the dollar limits that will apply for the next calendar year well before the beginning of that year. This gives employers time to update their plan designs and make sure their plan administration will be consistent with the new limits.

This Compliance Overview includes a chart of the inflation-adjusted limits for 2022. Most of the limits will increase, although some limits remain the same for 2022.

Links and Resources

Revenue Procedure 2021-25: 2022 limits for HSAs and HDHPs
IRS Notice 2021-61: 2022 limits for retirement plans
Revenue Procedure 2021-45: 2022 limits for health FSAs, adoption assistance and transportation fringe benefits

Limit	2021	2022	Change
HSA Contribution Limit
Self-only	$3,600	$3,650	Up $50
Family	$7,200	$7,300	Up $100
Catch-up contributions*	$1,000	$1,000	No change
HDHP Minimum Deductible
Self-only	$1,400	$1,400	No change
Family	$2,800	$2,800	No change
HDHP Out-of-Pocket Maximum
Self-only	$7,000	$7,050	Up $50
Family	$14,000	$14,100	Up $100
Health FSA
Limit on employees’ pre-tax contributions	$2,750	$2,850	Up $100
Carryover limit	$550	$570	Up $20
Dependent Care FSA*
Tax exclusion	$10,500 ($5,250 if married and filing taxes separately)	$5,000 ($2,500 if married and filing taxes separately)	Return to traditional rules
Transportation Fringe Benefits (Monthly Limits)
Transit pass and vanpooling (combined)	$270	$280	Up $10
Parking	$270	$280	Up $10
401(k) Contributions
Employee elective deferrals	$19,500	$20,500	Up $1,000
Catch-up contributions	$6,500	$6,500	No change
Adoption Assistance Benefits
Tax exclusion	$14,440	$14,890	Up $450

Limit	2021	2022	Change
HSA Contribution Limit
Self-only	$3,600	$3,650	Up $50
Family	$7,200	$7,300	Up $100
Catch-up contributions*	$1,000	$1,000	No change
HDHP Minimum Deductible
Self-only	$1,400	$1,400	No change
Family	$2,800	$2,800	No change
HDHP Out-of-Pocket Maximum
Self-only	$7,000	$7,050	Up $50
Family	$14,000	$14,100	Up $100
Health FSA
Limit on employees’ pre-tax contributions	$2,750	$2,850	Up $100
Carryover limit	$550	$570	Up $20
Dependent Care FSA*
Tax exclusion	$10,500 ($5,250 if married and filing taxes separately)	$5,000 ($2,500 if married and filing taxes separately)	Return to traditional rules
Transportation Fringe Benefits (Monthly Limits)
Transit pass and vanpooling (combined)	$270	$280	Up $10
Parking	$270	$280	Up $10
401(k) Contributions
Employee elective deferrals	$19,500	$20,500	Up $1,000
Catch-up contributions	$6,500	$6,500	No change
Adoption Assistance Benefits
Tax exclusion	$14,440	$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.