IRS Releases Updated Cost-of-Living Adjustments to Health Plans for 2022
The IRS has recently released Rev. Proc. 2021-45, which provides updated dollar amounts for (among many other things) Flexible Spending Accounts. As we reach the end of calendar year 2021, it is important to emphasize the various changes in health plan values to ensure proper compliance for 2022.
All non-grandfathered health plans have had their out-of-pocket limits increased from $8,550 to $8,700 for self-only coverage and from $17,100 to $17,400 for family coverage. More specifically, the following adjustments are confirmed for 2022:
Flexible Spending Account (FSA)
- The maximum annual limit on contributions to an FSA has been increased from $2,750 to $2,850.
- The maximum amount of annual carryover for an FSA has been increased from $550 to $570.
Dependent Care Spending Account (DCSA)
- The maximum annual limit on contributions to a DCSA has been reduced from $10,500 to $5,000.
Health Savings Accounts (HSA)
- The maximum annual limit on contributions to an individual HSA has been increased from $3,600 to $3,650.
- The maximum annual limit on contributions to a family HSA has been increased from $7,200 to $7,300.
High-Deductible Health Plans (HDHP)
- The maximum out-of-pocket limit for an individual HDHP has been increased from $7,000 to $7,050.
- The maximum out-of-pocket limit for a family HDHP has been increased from $14,000 to $14,100.
These adjustments are routine and are performed annually to keep pace with inflation and other economic factors. FNA will keep track of any further changes to health insurance plans and update this article as needed.
Heather Reynolds, ESQ
CCO - Administrative Officer