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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 2022Taxable 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