IRS Announces 2022 Plan Limits

The Internal Revenue System (IRS) recently announced the 2022 dollar limits for employee benefits including:

As cost-of-living expenses continue to rise due to inflation, the IRS annually adjusts contribution limits to accommodate increases in spending.

HDHP Limits

  • 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.

FSA Limits

  • 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).

Transportation Fringe

  • Transit pass and vanpooling (combined) will increase by $10 to $280.
  • Parking will increase by $10 to $280.

Adoption Assistance

  • 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.

Reach out to your Creative Benefits team member or email us at solutions@creativebenefitsinc.com with any questions.