The IRS has issued Notice 2021-61 and Revenue Procedure 2021-45 setting forth its annual employee benefit plan limitations for 2022. Key changes, placed in bold in the chart below, include the following:

  • Code Section 402(g) limitation on elective deferrals increased from $19,500 to $20,500.
  • Code Section 408(p) limitation on elective deferrals for SIMPLE retirement account plans increased from $13,500 to $14,000.
  • Code Section 415(c) maximum annual additions increased from $58,000 to $61,000.
  • Compensation limit under Code Section 401(a)(17) increased from $290,00 to $305,000.
  • HDHP Out of Pocket Maximum increased from $7,000 to $7,050 for self-only coverage and from $14,000 to $14,100 for family coverage.
  • HSA Maximum Contribution Limit increased from $6,000 to $3,650 for self-only coverage and from $7,200 to $7,300 for family coverage.
  • All adoption assistance limits and thresholds have increased.
  • All QSEHRA and Archer MSA limits increased.
  • Parking and transit fringe benefit contribution limits increased from $270 to $280 per month.
  2022 2021 2020
401(k) Plan Limits
Elective Deferrals
Maximum Elective Deferrals for 401(k) Plans $20,500 $19,500 $19,500
Maximum Elective Deferrals for SIMPLE 401(k) Plans $14,000 $13,500 $13,500
Maximum Catch-Up Contribution Limits for 401(k) Plans $6,500 $6,500 $6,500
Maximum Catch-Up Contribution Limits for SIMPLE 401(k) Plans $3,000 $3,000 $3,000
Annual Additions
Code Section 415(c) Limit $61,000 $58,000 $57,000
Compensation
Code Section 401(a)(17) Limit $305,000 $290,000 $285,000
Cafeteria Plan Limits
Health Flexible Spending Accounts
Maximum Salary Reduction $2,850 $2,750 $2,750
Maximum Carryover to Next Plan Year $570 $550 $500
Dependent Care Assistance Plan
Maximum Contribution Amount $5,000 ($2,500 if married filing separately) $5,000 ($2,500 if married filing separately) $5,000 ($2,500 if married filing separately)
Deemed Income of Spouse Incapable of Self-Care or Full-Time Student $250 a month with 1 qualifying individual

$500 a month with 2 or more qualifying individuals

$250 a month with 1 qualifying individual

$500 a month with 2 or more qualifying individuals

$250 a month with 1 qualifying individual

$500 a month with 2 or more qualifying individuals

Health Savings Account (HSA)
High Deductible Health Plan (HDHP) Minimum Annual Deductible $1,400 for self-only

$2,800 for family

$1,400 for self-only

$2,800 for family

$1,400 for self-only

$2,800 for family

HDHP Out-of-Pocket Maximum $7,050 for self-only

$14,100 for family

$7,000 for self-only

$14,000 for family

$6,900 for self-only

$13,800 for family

HSA Maximum Contribution Limit $3,650 for self-only

$7,300 for family

$3,600 for self-only

$7,200 for family

$3,550 for self-only

$7,100 for family

HSA Catch-Up Contribution Limit $1,000 $1,000 $1,000

Highly Compensated Employee (HCE) and Key Employee Threshold

*Thresholds are the same across testing and limits for various plans

HCE Threshold $135,000 $130,000 $125,000
Key Employee Threshold $200,000 for officer group

$150,000 for more than 1% owner

$185,000 for officer group

$150,000 for more than 1% owner

$185,000 for officer group

$150,000 for more than 1% owner

Consumer-Driven Health Care Limits
Excepted Benefit Health Reimbursement Accounts
Maximum Newly Available Benefit $1,800 $1,800 $1,800
Qualified Small Employer Health Reimbursement Account (QSEHRA) Limits $5,450 for single

$11,050 for family

$5,300 for single

$10,700 for family

$5,250 for single

$10,600 for family

Archer Medical Savings Accounts (MSAs)
Contributions Limits – Single $1,593 min.

$2,405 max.

$1,566 min.

$2,340 max.

$1,527.50 min.

$2,307.50 max.

Contribution Limits – Family $3,713 min.

$5,550 max.

$3,600 min.

$5,362.50 max.

$3,562.50 min.

$5,325 max.

Health Plan Deductible – Single $2,450 min.

$3,700 max.

$2,400 min.

$3,600 max.

$2,350 min.

$3,550 max.

Health Plan Deductible – Family $4,950 min.

$7,400 max.

$4,800 min.

$7,150 max.

$4,750 min.

$7,100 max.

HDHP Out-of-Pocket Maximum $4,950 for single

$8,750 for family

$4,800 for single

$8,750 for family

$4,750 for single

$8,650 for family

Fringe Benefits Limits
Adoption Assistance
Maximum Exclusion for Employer-Provided Adoption Assistance $14,890 $14,400 $14,300
Maximum Exempt from Phased Reduction of Exclusion $223,410 $216,660 $214,520
Maximum Allowable for Exclusion and Credit $263,410 $256,660 $254,520
Educational Assistance
Maximum Income Exclusion $5,250 $5,250 $5,250
Transportation Fringe Benefits
Parking $280 a month $270 a month $265 a month
Transit Passes & Vanpooling $280 a month $270 a month $265 a month
FICA Taxable Wage Base
Social Security
Maximum Taxable Earnings $147,000 $142,800 $137,700
Employer Tax Rate 6.2% 6.2% 6.2%
Employee Tax Rate 6.2% 6.2% 6.2%
Medicare
Employer Tax Rate 1.45% 1.45% 1.45%
Employee Tax Rate 1.45% 1.45% 1.45%