Many employee benefits are subject to annual dollar limits that are occasionally increased due to inflation. The Internal Revenue Service (IRS) recently announced cost-of-living adjustments to the annual dollar limits for various welfare and retirement plan limits for 2022. Some limits are remaining the same, but most limits are increasing effective January 1, 2022.
The following are some important limits in effect for 2022:
Employers should update their benefit plan designs with these new limits, and make sure that their plan will reflect the new 2022 limits. They may also want to communicate the new benefit plan limits to their employees.
Click here to read the full IRS announcement.