June 16, 2021

Volume XI, Number 167

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June 14, 2021

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IRS Announces 2022 Limits for Health Savings Accounts, High-Deductible Health Plans and Excepted Benefit HRAS

Recently, 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.

© 2021 McDermott Will & EmeryNational Law Review, Volume XI, Number 131
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About this Author

Jacob Mattinson Employee Benefits Attorney
Associate

Jacob M. Mattinson focuses his practice on employee benefits and matters related to 401(k), 403(b), pension, executive compensation, health care reform, and cafeteria and welfare plans.

Jacob assists clients in drafting employee benefit plan documents and amendments. He represents clients in matters before the Internal Revenue Service (IRS), US Department of Labor (DOL) and Pension Benefit Guaranty Corporation with respect to plan qualification issues. He also counsels privately and publicly held corporations and tax-exempt entities on a variety of benefits and Employee Retirement...

312-984-3263
Judith Wethall, McDermott Law Firm, Chicago, Labor and Employment Law Attorney
Partner

Judith Wethall focuses her practice on employee benefits, specifically health and welfare programs. She counsels employers, plan administrators, insurers and consultants on a wide range of ERISA compliance issues. Judith's clients include sole proprietors to Fortune 100 companies and cover a variety of industries including health care, technology, manufacturing, insurance and financial.

Judith has extensive experience advising clients on health care law reform; wellness programs; Medicare secondary payor rules; fiduciary compliance; disability...

312-984-7577
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