The IRS released Revenue Procedure 2021-25 on May 10th, providing the inflation-adjusted limits for Health Savings Accounts (HSAs) and high deductible health plans (HDHPs) for 2022. This routine and expected guidance is a welcome change of pace amongst the many pandemic related changes employers continue to experience. The notice increases the 2022 HSA contribution limits and maximum out of pocket expense limits by $50 for individuals and $100 for families.
The changes for 2022 are compared to the current limits and reflected in the below table.
|
Type of Limit |
2021 |
2022 |
Change |
|
|
HSA Contribution Limit |
Self-only |
$3,600 |
$3,650 |
Up $50 |
|
Family |
$7,200 |
$7,300 |
Up $100 |
|
|
HSA Catch-up Contributions (not subject to adjustment for inflation) |
Age 55 or older |
$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 Maximum Out-of-pocket Expense Limit (deductibles, copayments and other amounts, but not premiums) |
Self-only |
$7,000 |
$7,050 |
Up $50 |
|
Family |
$14,000 |
$14,100 |
Up $100 |
|
*Employers offering a plan design with an embedded deductible must make sure the minimum deductible for HDHP self-only plans is at least $2,800
The new contribution limits apply beginning January 1, 2022, and the new maximum out of pocket limits apply to plans beginning on or after January 1, 2022. As a reminder, in order for an individual to be eligible to make HSA contributions, they must be enrolled in qualifying HDHP coverage subject to the minimum deductible and maximum out of pocket limits and; they must not be enrolled in another health plan providing first dollar coverage except what is permitted.
In planning for 2022, employers that offer HDHPs with HSAs should review their plan designs to ensure compliance with minimum deductible and maximum out of pocket expense limits and adjust any employee communication pieces to reflect the increased HSA contribution limits.
If you have additional questions, please contact your HORAN Account Manager or Client Specialist.
The information contained in this document is informational only and is not intended as, nor should it be construed as, legal or accounting advice. Neither HORAN nor its consultants provide legal, tax nor accounting advice of any kind. We make no legal representation, nor do we take legal responsibility of any kind regarding regulatory compliance. Please consult your counsel for a definitive interpretation of current statute and regulation, and their impact on you and your organization.
