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
|