Employee Benefits Client Alert – Retirement Plan Limitations, ACA Numbers and Limits, Premium Tax Credit Reference Guide, and Medicare Cost Comparison

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Kaufman & Canoles

Kaufman & Canoles’ ESOPs & Employee Benefits Practice Group is pleased to provide the following reference materials as 2022 approaches:
  • 2022 Retirement Plan Limitations Chart
    • Please take note of the following increased limits for 2022:
      • 401(k)/403(b)/457 Deferral Limit – $20,500 (an increase of $1,000 from the 2021 limit)
      • Annual Compensation Limit – $305,000 (an increase of $15,000 from the 2021 limit)
      • Defined Contribution 415 Limit – $61,000 (an increase of $3,000 from the 2021 limit)
  • ACA Numbers & Limits 2015-2022
    • Penalties for failure to meet the large employer mandate have increased.
    • The “affordability of coverage” percentage has decreased.
    • The FSA limit has increased to $2,850.
  • 2022 Premium Tax Credit Quick Reference Chart
    • Lower-income individuals and families (up to 150% of the Federal poverty line) can now receive Marketplace coverage at zero cost (fully subsidized by the government).
    • Higher-income individuals and families (over 400% of the Federal poverty line) are now eligible for subsidies if their coverage costs more than 8.5% of their income.
  • Medicare Cost Comparison 2021 / 2022
    • Note that Part B premiums have increased by over 14% while Social Security benefits are only increasing by 5.9%.

Pending Legislation
As we head into 2022, we are also keeping a close eye on proposed retirement plan and other tax legislation. Although various pieces of benefits-related legislation proposed throughout 2021 have not yet materialized into new law, Congress appears to have a continuing interest in the area. Should any of these proposals progress into new law, they may require significant attention in 2022.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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