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Template: HR Reminder for Team to Update HSA Contributions for 2022

Template: HR Reminder for Team to Update HSA Contributions for 2022

Each year, the IRS announces new maximum contribution limits for health savings accounts (HSA). Use this HR communication template to prepare your employees for the new year by updating their HSA contributions accordingly.

 

What is a Health Savings Account (HSA)?

A health savings account (HSA) is a personal bank account with significant tax advantages that can be used by an individual to pay for qualified medical expenses, typically on high-deductible health insurance plans. 

People with HSAs need to be enrolled in a compatible, high-deductible health plan (HDHP) to properly utilize their benefits. They can then use the money from their HSAs for qualified medical expenses, which can be determined by reviewing the HDHP.

 

2022 HSA Contribution Limits

In May 2021, the IRS released 2022 cost-of-living adjusted limits for HSAs and HDHPs. These new contribution caps include:

  2022 2021

Individual Contribution Limit

$3,650 $3,600
Family Contribution Limit $7,300 $7,200
Catch-up Contribution Limit (for those over age of 55) $1,000 $1,000
Max Individual out-of-pocket $7,050 $7,000
Max Family out-of-pocket $14,100 $14,000


Template: HSA Contributions Update Communication 

Use the following template to remind employees about the updated HSA caps and how they can make adjustments to their contributions: 

Team,

Each year, the IRS announces contribution limits for numerous tax provisions and healthcare savings accounts. Sometimes, the IRS makes adjustments to account for inflation and changes in cost-of-living. 

In 2022, some contribution limits were slightly increased for health savings accounts (HSA). See the chart below for reference:

 

2022

2021

Individual Contribution Limit

$3,650

$3,600

Family Contribution Limit

$7,300

$7,200

Catch-up Contribution Limit (for those over age of 55)

$1,000

$1,000

Max Individual Out-of-Pocket

$7,050

$7,000

Max Family Out-of-Pocket

$14,100

$14,000

Employees who want to update their contribution amount can contact [contact information] or make adjustments to your elections using [name of HRIS].

If you have any questions about HSA contributions or other benefits, please contact [contact information].

Thank you,

[name]

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