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November 16, 2021

7 Due Diligence Issues to Avoid False Claims Act Lawsuits

Nelson Mullins partners Jennifer Malinovsky and Ed White join Alice Harris, an attorney with Nexsen Pruet, to go over the key compliance areas to look for in due diligence. 

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Comp and Benefits Brief

Nov. 12, 2021

2022 Employee Benefit Plan Limits Announced by IRS

The IRS has released the 2022 cost-of-living adjustments for limits on employee benefits with some adjustments to the 2022 rates including minor increases to the maximum contributions allowed under Code Section 415 for defined contribution plans (e.g. 401(k)), maximum compensation used in determining benefits, and the taxable wage base. Below is an updated chart on the 2022 limits.

Limits for 2022 – Qualified Plans

Limitation

2022

2021

Change?

Elective Deferrals (401(k) and 403(b)) Pre-Tax Contributions; 457(b), 402(g)(3))

$20,500

$19,500

Yes

Catch-Up Contributions – 401(k), 403(b), 457(b), SARSEP Plans

$6,500

$6,500

No

Highly Compensated Employee (HCE) – 414(q)

$135,000

$130,000

Yes

Annual Compensation Limit – 401(a)(17), 404(l), 408(k)(3)(C), 408(k)(6)(D)(ii)

$305,000

$290,000

Yes

Key Employee – 416(i)(1)(A)(i), Top-Heavy and 409A Specified Employee

$200,000

$185,000

Yes

Defined Contribution Plan – Total Annual Contributions – 415(c)

$61,000

$58,000

Yes

Defined Benefit Plan – Maximum Benefit – 415(b)

$245,000

$230,000

Yes

ESOP – Determining the Length of the General Five-Year Distribution Period

 

$245,000

$230,000

Yes

ESOP – Maximum Account Balance subject to Five-Year Distribution Period

 

$1,230,000

$1,165,000

Yes

 

Limits for 2022 – Tax Withholding Rates

Limitation

2022

2021

Change?

Taxable Wage Base

$147,000

$142,800

Yes

 

Limits for 2022 – High Deductible Plans, Health Savings Account and FSAs

Limitation

2022

2021

Change?

High Deductible Health Plan – IRS Limits (Self/Family)

  • Annual Deductible – Minimum
  • Out-of-Pocket Expenses (HSA) – Maximum

 

  • $1,400/$2,800
  • $7,050/$14,100

 

  • $1,400/$2,800
  • $7,000/$14,000

 

  • No
  • Yes

HSA Contribution Limit (Individual/Family)

$3,650/$7,300

$3,600/$7,200

Yes

HSA Contribution Catch-Up Limit

$1,000

$1,000

No

Flexible Spending Account (FSA) – Health Care – Employee Contribution

 

$2,850

$2,750

Yes

Flexible Spending Account (FSA) – Health Care – Maximum Carryover

$570

$550

Yes

Flexible Spending Account (FSA) – Dependent Care – Employee Contribution

$5,000

$5,000

No

Out-of-Pocket Expenses (ACA) – PHSA §2707(b) Maximum (in-network Essential Health Benefits for Non-Grandfathered Plans)

  • Self Only
  • Embedded Individual Max within Family Coverage
  • Family

 

 

  • $8,700
  • $8,700
  • $17,400

 

 

  • $8,550
  • $8,550
  • $17,100

 

 

  • Yes 
  • Yes
  • Yes

 

Limits for 2021 – Affordable Care Act

Limitation

2022

2021

Change?

ACA Affordability Safe-Harbor

 

9.61%

9.83%

Yes

 

Limits for 2022 – Qualified Transportation Fringe Benefit

Limitation

2022

2021

Change?

Transit Pass, Van Pool

$280

$270

Yes

Qualified Parking

 

$280

$270

Yes

 

Penalties for 2022 – Affordable Care Act

Penalty

2022

2021

Change?

No Offer of Coverage

$2,750

$2,700

Yes

Offer of Coverage Lacks Minimum Value or Affordability

$4,120

$4,060

Yes

 

PBGC Premiums for Defined Benefit Pension Plans – 2022

Premium

2022

2021

Change?

Flat Rate (Per Participant)

$88

$86

Yes

Variable Rate for $1,000 of Unfunded Vested Benefits

$48

$46

Yes

Per Participant Variable Cap

$598

$582

Yes

 

Nelson Mullins Executive Compensation and Employee Benefits attorneys are ready to assist with your compensation and benefits related matters in a cost-effective and responsive manner. Please contact one of our Executive Compensation and Employee Benefits partners or the Nelson Mullins attorney with whom you work.