IRS Releases 2022 Cost of Living Adjustments for Certain Tax Provisions
Today, the IRS released IRS Revenue Procedure 2021-45 which provides the 2022 cost-of-living increases for inflation for certain items. In addition, on November 4, 2021, the IRS released Notice 2021-61 which provided the 2022 COLA increases for retirement plans, including 401(k) plans.
| Taxable Years Beginning in 2022 | Taxable Years Beginning in 2021 | |
| Limit on voluntary employee salary reduction contributions to a health flexible spending arrangement (Section 3.16 of Rev. Proc. 2021-45) | $2,850 | $2,750 |
| Maximum carryover amount of unused FSA amounts (Section 3.16 of Rev. Proc.2021-45 | $570 | $550 |
| Monthly limit on fringe benefit exclusion for transit and parking (Section 3.17 of Rev. Proc. 2021-45) | $280 | $270 |
| Maximum exclusion for qualified adoption expenses furnished pursuant to an adoption assistance program (Section 3.19 of Rev. Proc. 2021-45) | $14,890 | $14,400 |
| Maximum reimbursement from a qualified small employer health reimbursement arrangement (QSEHRA) (Section 3.62 of Rev. Proc. 2021-45) | $5,450 ($11,500 for family coverage) | $5,300 ($10,700 for family coverage) |
| Maximum contribution limit for employees contributing to a 401(k), 403(b) or 457 plan (Notice 2021-61) | $20,500 | $19,500 |