IRS announces benefit plan limits for 2022

2022 Lockton COLA Trifold_1060871_CoverThe IRS has announced welfare and retirement benefit plan limits for 2022. There are many sections in the Tax Code that limit the amount of tax-favored welfare and retirement benefits an employer may provide or an employee may receive. The IRS updates these limits annually to account for inflation. 

Here are the limits for 2022 and the corresponding limits for 2021. Note that regulators previously issued guidance updating the limits for health savings accounts and their corresponding high-deductible health plans, as well as certain health reform-related fees, penalties and limits. Those updates are included as well. 

Lockton comment: As a reminder, the IRS and congress provided employers various flexibilities in light the COVID-19 pandemic, including allowing participants to carry over their entire remaining year-end balance for both health and dependent care flexible spending accounts from the plan year ending in 2021 to the following plan year. Employers wishing to take advantage of these accommodations should amend their plans to allow for these changes. 

Please click the image for a printable version of the 2022 retirement and welfare benefit plan limits (opens a new window).

Not Legal Advice: Nothing in this Update should be construed as legal advice. Lockton may not be considered your legal counsel and communications with Lockton Companies are not privileged under the attorney-client privilege.

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