New IRS Regulations for 2022

New IRS Regulations for 2022

The IRS has recently released updated regulations regarding the contribution and plan limits for retirement plans and cafeteria plans for 2022.

The following are Retirement Plan Limits and Thresholds for 2022:

Total Defined Contribution Plan Limit   $61,000 (up from $58,000 in 2021)
401(k)/Roth Employee Deferral Limit $20,500 (up from $19,500 in 2021)
401(k)/Roth Catch-up Contribution Limit (age 50+) $6,500 (unchanged from 2021)
SIMPLE 401(k) Employee Deferral Limit $14,000 (up from $13,500 in 2021)
SIMPLE 401(k) Catch-up Contribution Limit (age 50+) $3,000 (unchanged from 2021)
IRA (Traditional and Roth) Contribution Limit $6,000 (unchanged from 2021)
IRA Catch-up Contribution Limit $1,000 (unchanged from 2021)
Annual Compensation Limit $305,000 (up from $290,000 in 2021)

The IRS also raised the social security taxable wage base to $147,000 (up from $142,800 in 2021).

The following are Cafeteria Plan Limits and Thresholds for 2022:

Health FSA Contribution Limit $2,850 (up from $2,750 in 2021)
Health FSA Carryover Limit $570 (up from $550* in 2021)
Dependent Care FSA Max Election $5,000 (unchanged from 2021)
HSA Max Contribution Limit - Individual $3,650 (up from $3,600 in 2021)
HSA Max Contribution Limit - Family $7,300 (up from $7,200 in 2021)
HSA Catch-Up Contribution Limit (age 55+) $1,000 (unchanged from 2021)

*Special COVID-19 relief gives employers the option to allow employees to carry over their unspent 2021 FSA balance into 2022.