Background
Federal law sets annual limits on various tax-preferred employee benefit plans. The following chart compares the 2021 and 2022 limits for the most common types of plans and benefits:
| Benefits Plan Limits Comparison | 2022 Limits | 2021 Limits |
|---|---|---|
| Social Security (Old Age Survivors Disability Insurance (OASDI)) | $147,000 | $142,800 |
| Medicare (Part A, hospitalization) | Unlimited | Unlimited |
| Health Flexible Spending Account (FSA) Maximum Contribution (per plan year) | $2,850 | $2,750 |
| Parking | $280/month | $270/month |
| Transit Pass / Commuter Vehicle | $280/month | $270/month |
| Maximum Salary Deferral (§401(k) / §403(b) / §457) | $20,500 | $19,500 |
| Maximum “Catch-Up” Salary Deferral (age 50 or older) | $6,500 | $6,500 |
| Compensation Limit (§401(a)) | $305,000 | $290,000 |
| Maximum Defined Benefit Limit | $245,000 | $230,000 |
| Defined Contribution Annual Additions Limit (§415) | $61,000 | $58,000 |
| “Key Employee” Compensation Limit | $200,000 | $185,000 |
| “Highly Compensated Employee” Limit | $135,000 | $130,000 |
| Health Savings Accounts (HSA) | 2022 Self-Only Limits | 2022 Family Limits | 2021 Self-Only Limits | 2021 Family Limits |
|---|---|---|---|---|
| HSA Maximum Contribution | $3,650 | $7,300 | $3,600 | $7,200 |
| HSA Maximum “Catch-Up” Contribution (age 55 or older) | $1,000 | $1,000 | $1,000 | $1,000 |
| High-Deductible Health Plan (HDHP) Minimum Deductible | $1,400 | $2,800 | $1,400 | $2,800 |
| HDHP Maximum Out-of-Pocket Expense | $7,050 | $14,100 | $7,000 | $14,000 |
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EPIC offers this material for general information only. EPIC does not intend this material to be, nor may any person receiving this information construe or rely on this material as, tax or legal advice. The matters addressed in this document and any related discussions or correspondence should be reviewed and discussed with legal counsel prior to acting or relying on these materials.
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