HealthEquity blog

Employers: What you need to know about 2022 benefit limits


2022 is here, and with a new year comes updated contribution limits for your team members’ benefit accounts. This information is important to help your people make plans for the upcoming year.

Limits are typically announced at different times during the year. For example, HSA contribution limits are generally announced in May while FSA contribution limits are generally announced in October or November. For this reason, it can sometimes be difficult to find the limits for the upcoming year. That’s where we can help. You can see all the key 2022 limits, all in one place. Refer your team members here any time they are searching for a limit that fits their situation.


2022 HSA-qualified health plan deductible and out-of-pocket maximum

To qualify for a Health Savings Account (HSA), one of the requirements is for a person to first be enrolled in an HSA-qualified high deductible health plan (HDHP). To qualify, the HDHP has to have both a minimum deductible limit as well as a maximum out-of-pocket maximum limit for expenses. Below are the 2022 limits:


Minimum annual deductible $1,400 $2,800
Out-of-pocket maximum $7,050 $14,100


Key definitions to know

Deductible: “The amount you pay for covered health care services before your insurance plan starts to pay.” (

Out-of-pocket costs: “Your expenses for medical care that aren’t reimbursed by insurance. Out of pocket costs include deductibles, coinsurance, and copayments for covered services plus all costs for services that aren’t covered.” (

2022 HSA contribution limits

An HSA is a savings account with the triple-tax advantage1 and can be used to pay for qualified medical expenses. The triple tax-advantage includes:

  1. Contributions made to an HSA are tax-deductible.
  2. Any growth that comes from interest or potentially through investing2 HSA funds is tax-free.
  3. When funds are spent on qualified medical expenses, the distribution is tax-free.

Unlike other health accounts, unused funds in an HSA automatically roll over to the next year, and there is no expiration date for when funds must be spent. Below are the 2022 HSA contribution limits:


HSA contribution limit
Individual $3,650
Family $7,300
Catch-up contribution for those 55+ $1,000


Key definitions to know

Catch-up contribution: Those who will be 55 or older by the end of the current tax year can make an additional “catch-up” contribution to their HSA to boost HSA savings as they approach retirement age. The IRS designates the catch-up contribution amount at $1,000.

See how an HSA could benefit you and your team members.


2022 FSA contribution limits

Flexible Spending Accounts (FSAs) allow individuals to receive tax-free benefits when they spend funds on eligible healthcare expenses.3 Unlike HSAs, FSA funds must typically be spent during the plan year, or the funds are forfeited. Keep in mind, plan designs may vary.

There are four general types of FSAs:

  • Healthcare FSA: Can be used for eligible healthcare expenses, including deductibles, copays, and coinsurance.
  • Post-deductible FSA: Can be used for certain eligible healthcare expenses once the IRS statutory minimum deductible has been met. Can be used in conjunction with an HSA.
  • Limited-purpose FSA: Can be used to pay for eligible vision and dental expenses. Can be used in conjunction with an HSA.
  • Dependent Care FSA: Can be used to pay for eligible expenses related to eligible dependents or eligible relatives, including day care, preschool, elderly care, and other types of dependent care. This type of FSA can only be used if the dependent care is necessary for you or your spouse to work, look for work, or to attend school full time.

Employers may elect to offer team members some added flexibility for Healthcare FSAs with a claim runout period, a grace period (extra time to file claims for reimbursement or incur expenses past the health plan year) or a carryover amount as established by the IRS (see below). Below are the 2022 FSA limits:

2022 Healthcare FSA employee contribution limit: $2,850

2022 Limited Purpose FSA employee contribution limit: $2,850

2022 Dependent Care FSA contribution limit (Family): $5,000

2022 Dependent Care FSA contribution limit (Married filing separately): $2,500

2022 Healthcare FSA and Limited Purpose FSA carryover limit: $570


Key definitions to know

Grace period: Allows for a maximum of an extra 2.5 months to use FSA funds for eligible expenses incurred in the following plan year.

Carryover: Allows members to carry over a certain amount (for 2022, the limit is $570) that can be used in the following FSA plan year.

Explore how FSAs can help you and your team members.


2022 HRA limits

A Health Reimbursement Arrangement (HRA) is an employer-funded benefit that provides employees with funds to pay for eligible expenses like deductibles, copays, and more. Typically, the employee pays for the service and is then reimbursed (tax-free) by the employer from the HRA. There are a few different types of HRAs depending on employer size and each has different rules, regulations, limits, and guidelines that must be adhered to for employers to provide an HRA to their team members.4 See below for some of the 2022 HRA employer contribution limits:


Qualified small employer HRA limit
Individual $5,450
Family $11,050


Individual coverage HRA limit
Individual $5,450
Family $11,050


Expected benefit HRA limit
Individual and family $1,800


Learn more about the different types of HRAs and the rules and regulations for each. You can also contact our sales team or schedule a demo of our proprietary HRA platform.


2022 commuter limits

If your team members drive to work and pay to park their car, or if they take the bus or public transit to work, a commuter account allows them to set aside pre-tax funds to pay for their commute. Below are the 2022 commuter limits:


Commuter type
2022 monthly contribution limits
Parking $280
Transit $280


If a person were to use both transit and parking, they could set aside up to $6,720 annually. Assuming a 30% effective tax rate, that means they could potentially reduce their tax liability by more than $2,000 annually.5 Learn more about Commuter benefits with HealthEquity.

Pre-tax Commuter benefits are just the beginning of what is available through Luum. From proactive parking management to alignment with sustainability efforts, see how a Commuter account could benefit you and your employees.


Adoption Assistance Exclusion and Adoption Credit

Parents who either adopted or tried to adopt a child may seek to claim the adoption credit on their individual tax returns. And if a taxpayer’s employer helped with adoption expenses through a qualified adoption assistance program, the taxpayer may qualify to exclude that amount from their individual taxes.

The maximum exclusion for employer provided Adoption Assistance or the Adoption Tax Credit Limit is $14,890 for 2022.


Retirement contribution limits

Each year, the IRS sets the contribution limits for retirement accounts, including 401(k)s and Individual Retirement Accounts (IRAs). The rules for contributing and withdrawing retirement funds can be complicated, so employees should speak to a tax professional to ensure they are following all regulations. Below are the 2022 employee contribution limits for certain retirement accounts:


401(k) contribution limit
Employee contribution limit $20,500
Catch-up deposits (50 and older) $6,500


IRA contribution limit
Employee contribution limit $6,000


According to CNBC, “The IRA limit for 2022 remains unchanged at $6,000 and hasn’t increased since 2019.”


Make the most out of your benefits

These updated contribution and other limits for 2022 are more than just numbers to memorize. In many cases, they provide your team members with more opportunities to save than ever before, whether those savings will be used for current eligible expenses or saved for future qualified expenses or for retirement.


1HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.

2Investments are subject to risk, including the possible loss of the principal invested, and are not FDIC or NCUA insured, or guaranteed by HealthEquity, Inc. Investing through the HealthEquity investment platform is subject to the terms and conditions of the Health Savings Account Custodial Agreement and any applicable investment supplement. Investing may not be suitable for everyone and before making any investments, review the fund’s prospectus.

3HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.

4In addition to restrictions imposed by law, your employer may limit what expenses are eligible for reimbursements. It is the members' responsibility to ensure eligibility requirements as well as if they are eligible for the plan and expenses submitted.

5Scenarios, results and calculations are for illustrative purposes only. Individual results may vary.

HealthEquity does not provide legal, tax, financial or medical advice. Always consult a professional when making life-changing decisions.

Topics: HSA, HSA contribution limit, retirement, FSA, FSA contribution limit, IRS, hra, health savings, Commuter, Adoption

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