IRS 2022 Contributions Limits: What’s Changing

 

The IRS 2022 contribution limits were released on November 10, 2021. Here’s what’s changing for certain employee benefit plans beginning January 1, 2022.

 

2022 Contribution Limits for FSAs

 

Health FSA

For 2022, the Health Flexible Spending Account annual maximum contribution will increase by $100 to $2,850 per plan year.

 

Adoption Assistance FSA

The maximum amount that may be excluded from an employee’s gross income under an Adoption Assistance FSA will increase from $14,400 to $14,890.

 

Commuter Plan – Parking & Transit Account

For 2022, the Parking & Transit Accounts will increase by $10 to $280.

 

2022 IRS Plan Limits for Retirement Plans

The limitation used in the definition of highly compensated employees for 2021 will increase from $130,000 to $135,000. Additionally, certain plans will see the following updates:

 

401(k), 403(b), 457 Plans

  • The 2022 elective deferral limit will increase to $20,500 from $19,500.
  • The 2022 defined contribution plan annual contribution limit will increase to $61,000 from $58,000.
  • The catch-up contribution limit for employees ages 50 and over who participate in 401(k), 403(b), and most 457 plans will remain the same at $6,500.

 

IRAs

  • The contribution limit and the catch-up contribution remains unchanged.  The IRA annual contribution continues at $6,000 and the catch-up contribution limit continues at $1,000.

 

Overview of Changes

Plan Type 2021 Limits 2022 Limits
Health Flexible Spending Account $2,750 annual contribution $2,850 annual contribution
Health FSA Carry Forward Maximum $550 $570
Adoption Assistance Flexible Spending Account $14,440 annual contribution $14,890 annual contribution
Parking Plan $270 monthly contribution $280 monthly contribution
Transit Plan $270 monthly contribution $280 monthly contribution
Health Savings Account – Contribution Limit $3,600 annual contribution for individual coverage/$7,200 for family coverage $3,650 annual contribution for individual coverage/$7,300 for family coverage
Health Savings Account – Annual HDHP Minimum Deductible $1,400 for individual coverage/$2,800 for family coverage $1,400 for individual coverage/$2,800 for family coverage
Health Savings Account- Out-of-Pocket Maximums $7,000 for individual coverage/$14,000 for family coverage $7,050 for individual coverage/$14,100 for family coverage
401(k)/403(b)/457 Plans – Deferral Limit $19,500 elective deferral limit $20,500 elective deferral limit
401(k)/403(b)/457 Plans – Defined Contribution Plan Annual Contribution Limit $58,000 plan contribution limit $61,000 plan contribution limit
IRAs $6,000 contribution limit no change; $6,000 contribution limit
IRAs $1,000 catch-up contribution limit no change; $1,000 catch-up contribution limit

For more information, please refer to IRS Revenue Procedure 2021-45.