The IRS recently released their annual changes to flexible savings accounts (FSA) and 401(k)s. Below is a chart that compares the 2022 limitations to 2021. (1)
| Item | 2022 Limits | 2021 Limits | Comments |
| 401(k) Pretax Contribution Limit | $20,500 | $19,500 | First increase in three years |
| 401(k) catch-up contribution limit | $6,500 | $6,500 | No change for annual catch-up deposits for individuals 50 and older |
| HSA contribution limit for individuals | $3,650 | $3,600 | Health Savings Account (HSA) contribution limit for individual coverage |
| HSA contribution limit for family coverage | $7,300 | $7,200 | Health Savings Account (HSA) contribution limit for family coverage |
| HDHP minimum deductible for individuals | $1,400 | $1,400 | High Deductible Health Plan (HDHP) minimal annual deductible for an individual is unchanged in 2022 |
| HDHP minimum deductible for individuals | $2,800 | $2,800 | High Deductible Health Plan (HDHP) minimal annual deductible for family is unchanged in 2022 |
| HDHP maximum out-of-pocket amounts for individuals | $7,050 | $7,000 | Annual individual limits for deductibles, copayments, and other amounts, not including premiums |
| HDHP maximum out-of-pocket amounts for family | $14,100 | $14,000 | Annual family limits for deductibles, copayments, and other amounts, not including premiums |
| FSA contribution limit | $2,850 | $2,750 | Annual maximum contribution to an employees’ flexible spending account |
| FSA carryover amount limit | $570 | $550 | Maximum amount of unused flexible spending account contribution that can be carried into the next year |
Along with informing employees of the new limits, employers should encourage employees to participate in 401(k) and FSA savings vehicles for their financial security. Employee financial wellness improves employees’ health and productivity (2).
In related news, the latest annual survey of Schwab Retirement Plan Services 401(k) plan participants found that workers’ confidence about achieving retirement goals has risen sharply since the previous year. More than half (53%) of 1,000 workers say they are very likely to achieve their retirement goals, compared to 37% in 2020. The survey also found that workers were planning to stash more money into their 401(k)s. (3)
(1) https://hrexecutive.com/hsas-fsas-and-401ks-11-numbers-to-know-for-2022/
(2) https://hrnetsourcedemo.com/blog/2021/09/07/why-financial-wellness-is-an-important-company-benefit/
(3) https://hrexecutive.com/what-the-new-401k-fsa-contribution-limits-for-2022-mean-for-hr/