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.
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HEALTH AND WELFARE PLAN LIMITS
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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.
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