On November 4, 2021, the IRS announced cost of living adjustments changing dollar limitations for pension plans and other retirement-related items for the tax year 2022. Here are the highlights:
| Plan Limits for Year: | 2022 | 2021 | 2020 | 2019 |
| 401k, 403b, 457 Elective Deferrals | $20,500 | $19,500 | $19,500 | $19,000 |
| 401k, 403b, 457 Catch-Up Contribution Limit (age 50 or over) | $6,500 | $6,500 | $6,500 | $6,000 |
| Annual Defined Contribution Plan Limit | $61,000 | $58,000 | $57,000 | $56,000 |
| Annual Compensation Limit | $305,000 | $290,000 | $285,000 | $280,000 |
| Highly Compensated Employees | $135,000 | $130,000 | $130,000 | $125,000 |
| Key Employee Officer in a Top-Heavy Plan | $200,000 | $185,000 | $185,000 | $180,000 |
| SIMPLE Employee Deferrals | $14,000 | $13,500 | $13,500 | $13,000 |
| SIMPLE Catch-Up Deferral | $3,000 | $3,000 | $3,000 | $3,000 |
| SEP Minimum Compensation | $650 | $650 | $600 | $600 |
| Traditional IRA Contribution Limit | $6,000 | $6,000 | $6,000 | $6,000 |
| Traditional IRA catch-up Contribution Limit (age 50 or over) | $1,000 | $1,000 | $1,000 | $1,000 |
| Social Security Wage Base | $147,000 | $142,800 | $137,700 | $132,900 |
For full list of limitations for retirement-related items for tax year 2022, please visit IRS.GOV.
Source: Internal Revenue Service Notice 2021-61.
Please note, annual contribution rates are based on the IRS 2022 retirement plan limitations and are subject to change. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice.