2022 Contribution Limits
By Anne ZavagliaPosted on November 30th, 2021
The IRS has announced Cost-of-Living adjustments for contribution limits to 401(k)s and other qualified plans for 2022. Contributions to IRAs will remain the same. See the chart below to see how the changes will affect you.
Plan Type | 2022 | 2021 |
401(k), 457 and 403(b) maximum annual elective deferral limit | $20,500 | $19,500 |
401(k), 403(b), or 457 plans catch-up contribution limit for individuals aged 50 or over | $6,500 | $6,000 |
Defined contribution plan annual limit | Lesser of : $61,000, or 100% of compensation | Lesser of : $58,000, or 100% of compensation |
SIMPLE maximum annual elective deferral limit | $14,000 | $13,000 |
SIMPLE 401(k) or SIMPLE IRA catch-up contribution limit for individuals aged 50 and over | $3,000 | $3,000 |
Traditional IRA contribution limit | Lesser of: $6,000 or 100% of compensation | Lesser of: $6,000 or 100% of compensation |
Traditional IRA catch-up contribution limit for individuals aged 50 or over | $1,000 | $1,000 |
Defined Benefit plan for annual limit under section 415 | $245,000 | $230,000 |
Annual allowable compensation limit for deduction, benefit and contribution purposes | $305,000 | $290,000 |
Highly Compensated Employee | $135,000 | $130,000 |
Key Employee/officer in a top heavy plan | $200,000 | $185,000 |
Income subject to Social Security tax | $147,000 | $142,800 |
For full details on plan limits for 2022, visit the IRS Website.
Source: IRS.gov