Benefit Plan and Payroll Limits for 2022 (Benefit Minute)

Posted in: Benefit Minute, Employee Benefits

Set forth below are the 2022 and 2021 limitations for qualified plans and other benefit related items.


2022 2021
401(k), 403(b), 457(b)(2) and 457(c)(1) elective deferral limit $20,500 $19,500
401(k), 403(b) and 457 catch-up contribution limit (if 50 or over) $6,500 $6,500
Defined benefit plan max/Maximum annual pension $245,000 $230,000
Defined contribution plan max/Maximum annual contribution $61,000 $58,000
Qualified plan annual compensation limit $305,000 $290,000
Highly compensated employee $135,000 $130,000
Key employee - officer $200,000 $185,000
SIMPLE retirement deferrals $14,000 $13,500
FICA tax rate (OASDI and HI) *plus additional .9% HI on wages over $200,000 Employee 7.65% / Employer 7.65% Employee 7.65%*/ Employer 7.65%
Social Security taxable wage base (OASDI only) $147,000 $142,800
ACA 4980H(a) “No Offer” penalty $2,750 $2,700
ACA 4980H(b) “Not Affordable/Not Minimum Value” penalty $4,120 $4,060
ACA affordability for employer mandate (percentage of household income) 9.61% 9.83%
ACA maximum out-of-pocket expenses for essential health benefits (non-grandfathered) Individual $8,700/ Family $17,400 Individual $8,550/ Family $17,100
Healthcare FSA maximum salary reduction $2,850 $ 2,750
Healthcare FSA maximum carryover into next plan year $570 $550 unless amended for COVID relief
Qualified High Deductible Health Plan (QHDHP) minimum deductible Individual $1,400/ Family $2,800 Individual $1,400/ Family $2,800
Qualified High Deductible Health Plan (QHDHP) maximum out-of-pocket expenses Individual $7,050/ Family $14,100 Individual $7,000/ Family $14,000
HSA maximum annual contribution Individual $3,650/ Family $7,300 Individual $3,600/ Family $7,200
HSA catch-up contribution limit (if 55 or over) $1,000 $1,000
Maximum income exclusion for employer-provided adoption assistance $14,890 $14,440
Qualified parking monthly limit $280 $270
Transit passes/Vanpooling combined monthly limit $280 $270

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