The Internal Revenue System (IRS) recently announced the 2022 dollar limits for employee benefits including:
- High Deductible Health Plans (HDHPS),
- Health Savings Accounts (HSAs),
- Flexible Spending Accounts (FSAs),
- Transportation Benefits,
- and Adoption Assistance.
As cost-of-living expenses continue to rise due to inflation, the IRS annually adjusts contribution limits to accommodate increases in spending.
- The minimum deductible for those with single coverage will be $1,400. For those with family coverage, the limit will be $2,800.
- The maximum out-of-pocket will increase those with single coverage, to $7,050; for those with family coverage, to $14,100.
HSA Contribution Limits
- Those with single HDHP coverage will be able to contribute up to $3,650, up $50 from 2021. Those with family HDHP coverage will be able to contribute up to $7,200, up $100 from 2021.
- Catch-up contributions will remain the same at $1,000.
- The Health FSA limit on employees’ pre-tax contributions will increase to $2,850 with the carryover limit increasing to $570.
- The Dependent Care FSA (tax exclusion) contribution limit will remain the same at $5,000 ($2,500 if married and filing taxes separately).
- Transit pass and vanpooling (combined) will increase by $10 to $280.
- Parking will increase by $10 to $280.
- For the adoption of a child, the maximum amount that may be excluded from an employee’s gross income under an employer-provided adoption assistance program will increase to $14,890, up from $14,440 in 2021.
- The maximum adoption credit for the adoption of a child allowed to an individual will be $14,890.
- Both exclusion and the credit will begin to be phased out for individuals with a modified adjusted gross income over $223,410 and will be entirely phased for individuals with a modified adjusted gross income of $263,410 or more.
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