2022 Cost of Living Adjustments (COLA) and Retirement Plan Limits
On November 4, 2021, the Internal Revenue Service announced cost of living adjustments affecting dollar limitations (“COLA limits”) for pension plans and other retirement-related items for tax year 2022.
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2022 | 2021 | |
---|---|---|
401(k) / 403(b) / Existing SARSEP Elective deferral limit |
$20,500 | $19,500 |
457 Deferral Limits |
$20,500 | $19,500 |
Age 50+ Catch-up Limits The special catch-up is available for individuals who are at least |
$6,500
$3,000 |
$6,500
$3,000 |
403(b) Catch-up limit |
$23,500 | $22,500 |
457 Catch-up limit |
$41,000 | $39,000 |
Defined Contribution Plan 415 dollar limit |
$61,000 | $58,000 |
Defined Benefit Plans |
$245,000 | $230,000 |
Definition of Key Employee |
$200,000 | $185,000 |
Definition of Highly Compensated Employees |
$135,000 | $130,000 |
Compensation Limit The annual limit of compensation that may be taken into account for contribution purposes in accordance with IRC Section 401(a)(17) (certain grandfathered governmental plan participants). |
$305,000
$450,000 |
$290,000
$430,000 |
Adjusted Gross Income Limit for Saver’s Credit
|
$68,000 (joint) $34,000 (single) $51,000 (head of household) |
$66,000 (joint) $33,000 (single) $49,500 (head of household) |
SIMPLE Retirement Accounts Compensation for SEPs |
$14,000
$650 |
$13,500
$650 |
On October 13, 2021, the Social Security Administration released its cost of living information for 2022: Taxable Wage Base |
$147,000 |
$142,800 |
This material has been provided for educational purposes only for sponsors and prospective sponsors. This material was created to provide accurate and reliable information on the subjects covered. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.
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