IRS Announces HSA Limits for 2022

Each year around this time the IRS announces the inflation-adjusted limits for Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs), as they are required to do so annually prior to June 1st. On May 10, 2021, the IRS released Revenue Procedure 2021-25.

Rev. Proc. 2021-25 addresses the following:

• The maximum HSA contribution limit;
• The minimum deductible amount for HDHPs; and
• The maximum out-of-pocket expense limit for HDHPs.

The categorical limits noted above will of course differ depending on whether an individual has self-only or family coverage under an HDHP. The adjusted limits will go into effect as of January 1, 2022. Plan years beginning before that date use the 2021 HSA limits. Individuals are eligible to make contributions toward an HSA if they are enrolled in a qualifying HDHP and do not have other, disqualifying, first-dollar coverage (E.g. generally, please see IRS Publication 969).

For 2022, eligible individuals with self-only HDHP coverage may contribute up to $3,650 to their HSAs over the course of the year. This is an increase from 2021’s $3,600 maximum contribution amount. Those with family coverage under an HDHP will be permitted to contribute up to $7,300 to their HSAs in 2022, an increase from 2021’s $7,200 maximum contribution limit.

For 2022, the minimum deductible amount for HDHPs is unchanged from 2020 and 2021’s figures, remaining at $1,400 for individual coverage and $2,800 for family coverage. Although, the HDHP maximum amount for annual out-of-pocket expenses (the amount that an individual is required to pay) will rise to $7,050 for self-only coverage and to $14,100 for family coverage, up from $7,000 and $14,000 from 2021, respectively.

There is no change to the age 55+ HSA catch-up limit rules for 2022. That value remains at $1,000 per year and will continue to allow individuals age 55 or older to put away an additional “catch-up” contribution up to that amount annually. 

Please contact your Sales Executive or Account Manager for additional details about how this may affect your 2022 HDHP/HSA offerings.