IRS Releases HSA Limits for 2022

IRS has just issued Revenue Procedure 2021-25, which provides the 2022 cost-of-living contribution and coverage adjustments for HSAs, as required under Code Section 223(g). It also includes the 2022 limit for Excepted Benefit HRAs. Some items have increased for 2022.  

 

Annual HSA Contribution Amounts

 

2021   2022    Contribution Amounts

 

$3,600  $3,650  Individual 

 

$7,200  $7,300  Family

 

$1,000   $1,000  Catch-up 

 

Annual Maximum Out-Of-Pocket Limits for HDHP

  

2021  2022  Coverage Levels

 

$7,000  $7,050 Individual

 

$14,000 $14,100 Family 

 

Annual Minimum Deductible Amount Limits for HDHP

  

2021 2022  Coverage Levels

 

$1,400 $1,400 Individual

  

$2,800  $2,800 Family

 

Excepted Benefit HRA

 

2021 2022 Contribution Limits

 

$1,800 $1,800

 

For a copy of Revenue Procedure 2021-25 see below: 

Rev. Proc. 2021-25

SECTION 1. PURPOSE

This revenue procedure provides the 2022 inflation adjusted amounts for Health 

Savings Accounts (HSAs) as determined under § 223 of the Internal Revenue Code and the maximum amount that may be made newly available for excepted benefit health reimbursement arrangements (HRAs) provided under § 54.9831-1(c)(3)(viii) of the Pension Excise Tax Regulations. 

SECTION 2. 2022 INFLATION ADJUSTED ITEMS

01 HSA INFLATION ADJUSTED ITEMS

Annual contribution limitation. For calendar year 2022, the annual limitation on 

deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,650. For calendar year 2022, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $7,300.

High deductible health plan. For calendar year 2022, a “high deductible health 2

plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $7,050 for self-only coverage or $14,100 for family coverage.

02 HRA INFLATION ADJUSTED ITEM

For plan years beginning in 2022, the maximum amount that may be made newly 

available for the plan year for an excepted benefit HRA under § 54.9831-1(c)(3)(viii) is $1,800. See § 54.9831-1(c)(3)(viii)(B)(1) for further explanation of this calculation.

SECTION 3. EFFECTIVE DATE

This revenue procedure is effective for HSAs for calendar year 2022 and for 

excepted benefits HRAs for plan years beginning in 2022. 

SECTION 4. DRAFTING INFORMATION

The principal author of this revenue procedure is Bill Ruane of the Office of 

Associate Chief Counsel (Income Tax & Accounting). For further information regarding § 223 of the Code and HSAs contact William Fischer at (202) 317-5500 (not a toll-free number). For further information regarding excepted benefit HRAs, contact Christopher Dellana at (202) 317-5500 (not a toll-free number). For further information regarding the calculation of the inflation adjustments in this revenue procedure, contact Mr. Ruane at (202) 317-4718 (not a toll-free number).

A Note From Larry Grudzien:

I have updated my Employer's Guide to Health Savings Accounts (HSAs) to include the new 2022 contribution and coverage amounts. I have also made other other changes.

Since I first wrote this publication in 2004, I have been updating it every time there has been any changes. It explains every aspect of HSAs in fifty questions and answers. It also includes a chart that compares HSAs with Health FSAs and HRAs.

If you would like a copy, please click on the link below:

http://www.bbp-dac.com/bbp/HSAEmployerGuide2021Final.pdf