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 $135,000 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 but modified by COVID-19 relief to allow full carryover of unused amounts1 | $550 but modified by COVID-19 relief to allow full carryover of unused amounts1 | see note |
1 The Consolidated Appropriations Act, 2021, signed into law at the end of 2020 allows employers that sponsor health FSAs or dependent care FSAs the option of permitting participants to roll over all unused amounts in these accounts from 2020 to 2021 and from 2021 to 2022. IRS Notice 2021-15, issued February 2021, addressed implementation of this relief.
QSEHRA Limits
| Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) | 2021 | 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 Tax Exclusion (monthly limits) | 2022 | 2020 | Change |
Transit passes and van pool services (employer + employee) | $280 | $270 | +$10 |
Qualified parking | $280 | $270 | +$10 |
Source: IRS Revenue Procedure 2021-45.
Earnings Subject to Social Security Payroll Tax
Social Security (FICA) Payroll Tax | 2022 | 2020 | 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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