The IRS has announced the 2022 cost-of-living adjustments for retirement plan and health and welfare benefit plan limitations. The charts below set forth the applicable limitations.
In 2021, many of the limitations that apply to retirement plans remained consistent from the 2020 limit. For 2022, almost all of the limitations have increased. The rows below represent the changed limitations between the 2021 limits and the 2022 limits. Below is a review of some important limits:
Health and Welfare Benefit Plans
Certain limitations that apply to health and welfare benefit plans remain unchanged, including the HSA annual deductible minimums and the catch-up limitations for HSA contributions. However, many other limitations have changed slightly, as noted in the following chart:
The dependent care assistance limit is currently $5,000 and has remained unchanged for a number of years.