401(k) Plan Limits
|
Defined Contribution Plans |
2022 |
2021 |
Change |
Maximum employee elective deferral (age 49 or younger) 1
|
$20,500 | $19,500 | +$1,000
|
Employee catch-up contribution (age 50 or older by year-end) 2
|
$6,500 | $6,500 | no change
|
Maximum employee elective deferral plus catch-up contribution (age 50 or older)
|
$27,000 | $26,000 | +$1,000
|
Defined contribution maximum limit, employee + employer (age 49 or younger)
3
|
$61,000 | $58,000 | +$3,000 |
Defined contribution maximum limit (age 50 or older), all sources + catch-up
|
$67,500 | $64,500 | +$3,000 |
Employee compensation limit for calculating contributions
|
$305,000 | $290,000 | +$15,000 |
Key employees' compensation threshold for top-heavy plan testing 4
|
$200,000 | $185,000
| +$15,000
|
Highly compensated employees’ threshold for nondiscrimination testing 5
|
$135,000 | $130,000 | +$5,000
|
HSA and HDHP Limits
|
Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs) |
2022 |
2021 |
Change |
HSA contribution limit
(employer + employee) |
Self-only: $3,650
Family: $7,300 | Self-only: $3,600
Family: $7,200 | Self-only: +$50
Family: +$100 |
HSA catch-up contributions
(age 55 or older) |
$1,000
| $1,000
| no change
|
HDHP minimum deductibles
|
Self-only: $1,400
Family: $2,800 | Self-only: 1,400
Family: $2,800 | no change
no change |
HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums)
|
Self-only: $7,050
Family: $14,100 | Self-only: $7,000
Family: $14,000 | Self-only: +50
Family: +$100 |
Source: IRS Revenue Procedure 2021-25.
Health FSA Limits
Health Care Flexible Spending Accounts (Health FSAs) and Limited-Scope (Vision/Dental) FSAs
|
2022 |
2021 |
Change |
Maximum salary deferral
|
$2,850 | $2,750
| +$100
|
Maximum rollover amount
|
$570
| $550 (as indexed, but carryover of full unused balance allowed)1
| +$20
(indexed amount)
|
1 The
Consolidated Appropriations Act, 2021, gave employers that sponsor health FSAs the option of letting participants carry over all unused amounts in these accounts from 2020 to 2021 and from 2021 to 2022, although the indexed carryover amount was $550 for both years.
IRS Notice 2021-15, issued February 2021, addressed implementation of this relief.
Source: IRS Revenue Procedure 2021-45.
Dependent Care FSA Limits
Dependent Care FSAs (DC-FSAs) also called Dependent Care Assistance Plans (DCAPs)
|
2022 |
2021 |
Change |
Maximum salary deferral
(single taxpayers and married couples filing jointly)
|
$5,000 | $5,000 (but raised to $10,500)1
| revert to
$5,000
|
Maximum salary deferral
(married couples filing separately)
|
$2,500
| $2,500 (but raised to $5,250)1
| revert to
$2,500
|
1 The
American Rescue Plan Act, signed into law on March 11, 2021, raised allowable pretax contribution limits for DC-FSAs for calendar year 2021 only. The higher limits applied to the plan year beginning after Dec. 31, 2020 and before Jan. 1, 2022.
Additionally, while an FSA carryover usually only applies to health FSAs, COVID-19 relief permitted a carryover of unused balances for DC-FSAs into the next plan year for plan years 2020 and 2021.
Source: IRS Revenue Procedure 2021-45.
QSEHRA Limits
|
Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) |
2022 |
2021 |
Change |
Maximum payments and reimbursements through the QSEHRA
|
Self-only: $5,450
Family: $11,050 | Self-only: $5,300
Family: $10,700 | Self-only: +$150
Family: +$350 |
Source: IRS Revenue Procedure 2021-45.
Commuter Transit and Parking Limits
Qualified Transportation Benefit
(monthly limits) |
2022 |
2021 |
Change |
Transit passes and van pool services (employer + employee)
|
$280 | $270
| +$10
|
Qualified parking
|
$280 | $270
| +$10
|
Source: IRS Revenue Procedure 2021-45.
Adoption Assistance
Adoption Benefits
(Annual limits) |
2022 |
2021 |
Change |
Excludable Amount
|
$14,890
| $14,440
| +$450
|
Phase-out income thresholds:
|
|
|
|
Phase-out begins
|
$223,410 | $216,660
| +$6,750
|
Phase-out complete
|
$263,410 | $256,660
| +$6,750
|
Source: IRS Revenue Procedure 2021-45.
Earnings Subject to Social Security Payroll Tax
Social Security (FICA) Payroll Tax |
2022 |
2021 |
Change |
Maximum earnings subject to Social Security 12.4% FICA payroll tax (6.2% paid by employer and 6.2% paid by employee)
|
$147,000 | $142,800
| +$4,200
|
Source: Social Security Administration.
Visit SHRM's resource page on Open Enrollment.
Need help with legal questions? Check out the new SHRM LegalNetwork.