Employee Benefit Plan Limits for 2022

Many employee benefits are subject to annual dollar limits that are periodically updated for inflation by the IRS. The following commonly offered employee benefits are subject to these limits:

  • High deductible health plans (HDHPs) and health savings accounts (HSAs);
  • Health flexible spending accounts (FSAs);
  • 401(k) plans; and
  • Transportation fringe benefit plans.

The IRS typically announces the dollar limits that will apply for the next calendar year well before the beginning of that year. This gives employers time to update their plan designs and make sure their plan administration will be consistent with the new limits.

This Compliance Overview includes a chart of the inflation-adjusted limits for 2022. Most of the limits will increase, although some limits remain the same for 2022.

Increased Limits

  • HSA contributions
  • HDHP out-of-pocket maximum limit
  • Health FSA limit for employee pre-tax contributions
  • Health FSA carryover limit
  • Monthly limits for transportation fringe benefit plans
  • Employees’ elective deferrals to 401(k) plans, pre-tax and Roth
  • Tax exclusion for adoption assistance benefits

Unchanged Limits

  • Tax exclusion for dependent care FSA benefits*
  • Catch-up contributions to an HSA
  • HDHP minimum deductible
  • Catch-up contributions to a 401(k) plan

Links and Resources

Limit 2021 2022 Change
HSA Contribution Limit
Self-only $3,600 $3,650 Up $50
Family $7,200 $7,300 Up $100
Catch-up contributions* $1,000 $1,000 No change
HDHP Minimum Deductible
Self-only $1,400 $1,400 No change
Family $2,800 $2,800 No change
HDHP Out-of-Pocket Maximum
Self-only $7,000 $7,050 Up $50
Family $14,000 $14,100 Up $100
Health FSA
Limit on employees’ pre-tax contributions $2,750 $2,850 Up $100
Carryover limit $550 $570 Up $20
Dependent Care FSA*
Tax exclusion $10,500 ($5,250 if married and filing taxes separately) $5,000 ($2,500 if married and filing taxes separately) Return to traditional rules
Transportation Fringe Benefits (Monthly Limits)
Transit pass and vanpooling (combined) $270 $280 Up $10
Parking $270 $280 Up $10
401(k) Contributions
Employee elective deferrals $19,500 $20,500 Up $1,000
Catch-up contributions $6,500 $6,500 No change
Adoption Assistance Benefits
Tax exclusion $14,440 $14,890 Up $450

*This limit is not generally subject to annual adjustment for inflation. However, for 2021, the American Rescue Plan Act (ARPA) increased the limit to $10,500 (or $5,250 for married individuals filing separately) due to the COVID-19 pandemic.