On Monday, May 10, 2021, the IRS announced the 2022 inflation-adjusted limits for Health Savings Accounts (HSAs) and requirements for High Deductible Health Plans (HDHPs) that are compatible with HSAs, in Revenue Procedure 2021-25.
- For 2022, the minimum annual deductible for an HSA-eligible HDHP will remain $1,400 for an individual contract and $2,800 for other than an individual (e.g., a family) contract.
- The maximum out-of-pocket limit will increase by $50, to $7,050 for an individual contract and by $100, to $14,100 for a family contract. Please Note: The maximum out-of-pocket per individual in a family contract may not exceed the individual out-of-pocket limit to comply with the ACA individual cost-sharing limit. For 2022, the ACA cost-sharing limit for a qualified health plan is $8,700 per individual.
The annual HSA contribution limit for 2022 will increase to:
- $3,650 for an account holder with individual HDHP coverage, and
- $7,300 for a person with family HDHP coverage.
- The catch-up contribution will remain unchanged, at $1,000, for a qualified individual who is age 55 or older by the end of the taxable year.
In addition, for 2022 the IRS confirmed the maximum employer contribution to an Excepted Benefit HRA (EBHRA) will remain unchanged, at $1,800 per year. An excepted-benefit HRA is not integrated with the employer’s major medical plan. As an excepted benefit, an EBHRA is not subject to the ACA mandates, such as the prohibition on lifetime or annual financial limits and the requirement that a plan provides coverage for all preventive care services on the United States Preventive Services Task Force (USPSTF) “A” or “B” list. To be excepted, the employer must, however, offer group health coverage to all employees who are eligible for the EBHRA, although participation in the employer’s health plan is not required.
This document is provided for general information purposes only and should not be considered legal or tax advice or legal or tax opinion on any specific facts or circumstances. Readers are urged to consult their legal counsel and tax advisor concerning any legal or tax questions that may arise.
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