IRS Adjusts HSA Contribution Limits

The IRS has increased health savings account contribution limits an average 1.4% for calendar 2022 to adjust for inflation.

Self-coverage caps will increase $50 to $3,650 annually with the family coverage limit rising $100 to $7,300.

Employers that sponsor high deductible health plans should make appropriate adjustments ahead of the open enrollment season later this year.

Enrollees aged 55 or older by the end of 2021 can make an additional $1,000 contribution to their HSAs.

The IRS defines a qualifying high-deductible health plan as one with a minimum annual deductible of $1,400 for individual coverage or $2,800 for family coverage.

The minimum deductibles for HSA-qualified insurance plans will remain unchanged for calendar 2022.

Out-of-pocket maximums will increase slightly in 2022 to $7,050 for individual coverage and $14,100 for family coverage.

The U.S. Department of Health and Human Services also released 2022 out-of-pocket maximums for Affordable Care Act-compliant plans.

Self-only plan limits increase 1.75% to $8,700 and family coverage maximums rise by the same percentage to $17,700.

The IRS also noted that the maximum employer contribution for excepted benefit health reimbursement arrangements (vision, dental, or short-term insurance plan premiums) will remain unchanged at $1,800 for 2022.