iRecently, 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 Benefit HRA |
|
|
|
|
Annual contribution limit |
$1,800 |
═ |
$1,800 |
NEXT STEPS
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.
