IRS Releases Notice 2021-25 and Notice 2021-26

IRS Releases 2022 Limits for HSAs

On May 10, 2021, the Internal Revenue Service (IRS) released Revenue Procedure 2021-25 providing the 2022 inflation-adjusted limits for high-deductible health plans (HDHPs) and health savings accounts (HSAs). 

Below, please find the 2022 limits for HDHPs and HSAs, as compared to 2021.

IRS Guidance on Taxation of Dependent Care Benefits 

The Internal Revenue Service released Notice 2021-26 which clarifies the taxation of dependent care assistance benefits that were available in 2021 and 2022 due to either the carryover of unused benefits or the extended claims period. Under the various COVID-19 related relief provisions, dependent care assistance benefits that would have been available in 2020 or 2021 could be used in a later year. This Notice provides that these benefits will be excluded from an employee’s gross income when they are used in 2021 or 2022. In addition, these amounts will not be taken into account for determining the dollar limit on dependent care assistance benefits in 2021 and 2022. 

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