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IRS Announces 2022 Dollar Limits for Retirement Plans

    Client Alerts
  • November 12, 2021

The IRS has announced the 2022 annual dollar limitations for retirement plans based on the applicable cost-of-living adjustment guidelines, with increases in many of the limits. The annual limit for elective deferrals to 401(k) plans and 403(b) plans will increase from $19,500 to $20,500, while the annual limit for catch-up contributions for individuals age 50 or over will remain unchanged at $6,500. The Social Security Administration also recently announced that the Social Security wage base will increase from $142,800 for 2021 to $147,000 for 2022.

Listed below are key limits applicable for 2022 and 2021.

Limit

2022

2021

Annual Compensation Limit

$305,000

$290,000

Elective Deferrals (401(k) plans, 403(b) plans, 457(b) plans)

$20,500

$19,500

Catch-up Contributions (plans other than SIMPLE plans)

$6,500

$6,500

Defined Contribution Plan 415 Limit

$61,000

$58,000

Defined Benefit Plan 415 Limit

$245,000

$230,000

Highly Compensated Employee

$135,000

$130,000

SIMPLE Plan Limit

$14,000

$13,500

SIMPLE Catch-up Contributions

$3,000

$3,000

Social Security Wage Base

$147,000

$142,800