Internal Revenue Service Issues Tax Inflation Adjustments for 2022 - Bim Group

Internal Revenue Service Issues Tax Inflation Adjustments for 2022

The Internal Revenue Service (IRS) issued Revenue Procedure 2021-45, which announces the annual inflation adjustments for tax year 2022. The revenue procedure provides adjustments for more than 60 tax provisions, including health flexible spending accounts under cafeteria plans and qualified small employer health reimbursement arrangements.

For health flexible spending arrangement contributions, the dollar limitation on voluntary employee salary reductions is $2,850. If the cafeteria plan allows carryover of unused amounts, the maximum carryover amount is $570.

The revenue procedure states that for qualified small employer health reimbursement arrangements, the total amount of payments and reimbursements cannot exceed $5,450 for self-only coverage or $11,050 for family coverage.

For a quick reference guide to 2022 contribution and benefit limits, refer to the 2022 Annual Benefit Plan Amounts Card available in the Compliance File Gallery on Community.

 

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