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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 |
1 The $20,500 elective deferral limit is also known as the 402(g) limit, after the relevant tax code section. Participants' annual contributions may not exceed 100% of their compensation. 2 The $6,500 catch-up contribution limit for participants age 50 or older applies from the start of the year for those turning 50 at any time during the year. 3 Total contributions from all sources may not exceed 100% of a participant's compensation. 4 Includes officers of the company sponsoring the plan. 5 For the 2022 plan year, an employee who earned more than $130,000 in 2021 is an HCE. Source: IRS Notice 2021-61. | |||
HSA and HDHP Limits
| Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs) | 2022 | 2021 | Change |
HSA contribution limit | Self-only: $3,650 Family: $7,300 | Self-only: $3,600 Family: $7,200 | Self-only: +$50 Family: +$100 |
HSA catch-up contributions | $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 |
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 | $5,000 | $5,000 (but raised to $10,500)1 | revert to |
Maximum salary deferral | $2,500 | $2,500 (but raised to $5,250)1 | revert to |
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 | 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.
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