Dec 01, 2021
The Internal Revenue Service (IRS) announced (See Revenue Procedure 2021-25) cost-of-living adjustments to the applicable dollar limits for health savings accounts (HSAs), high-deductible health plans (HDHPs) and excepted benefit health reimbursement arrangements (HRAs) for 2022. Many of the dollar limits currently in effect for 2021 will change for 2022. The HSA catch-up contribution for individuals ages 55 and older will not change as it is not subject to cost-of-living adjustments.
The table below compares the applicable dollar limits for HSAs, HDHPs and excepted benefit HRAs for 2021 and 2022.
| Health and Welfare Plan Limits | 2021 | Δ | 2022 |
|---|---|---|---|
|
HDHP – Maximum annual out-of-pocket limit (excluding premiums) |
|||
| Self-only coverage | $7,000 | ↑ | $7,050 |
| Family coverage | $14,000 | ↑ | $14,100 |
|
HDHP - Minimum annual deductible |
|||
| Self-only coverage | $1,400 | ═ | $1,400 |
| Family coverage | $2,800 | ═ | $2,800 |
|
HSA - Annual contribution limit |
|||
| Self-only Coverage | $3,600 | ↑ | $3,650 |
| Family Coverage | $7,200 | ↑ | $7,300 |
| Catch-up contributions (ages 55 and older) | $1,000 | ═ | $1,000 |
|
Excepted Benefits HRA |
|||
| Annual contribution limit | $1,800 | ═ | $1,800 |
Plan sponsors should update payroll and plan administration systems for the 2022 cost-of-living adjustments and incorporate the new limits in relevant participant communications, such as open enrollment and communication materials, plan documents and summary plan descriptions.
Additional updates have been made to FSA contributions, QSEHRA benefit maximums, and the PCORI fee. For full details, review the cafeteria plans table on our Compliance Resources page (Tax-Favored Benefit Limits tab).
