Retirement Plan Limitations for 2022
November 10, 2021
By Peter Alwardt, CPA
As an ongoing service to our clients, EisnerAmper is providing this Alert to keep you abreast of the recent changes affecting employee benefit plans.
The Internal Revenue Service announced on November 4 the cost-of-living adjustments applicable to the dollar limitations for defined contribution and defined benefit plans for the tax year 2022. Several of the limits have changed from 2021, as noted below.”
| Code Section | 2022 | 2021 | 2020 |
|---|---|---|---|
| IRAs | |||
| IRA Contribution Limit – 219(b)(5)(A) | $6,000 | $6,000 | $6,000 |
| IRA Catch-Up Contributions – 219(b)(5)(B) | $1,000 | $1,000 | $1,000 |
| SEP | |||
| SEP Minimum Compensation – 408(k)(2)(C) | $650 | $650 | $600 |
| SEP Maximum Compensation – 408(k)(3)(C) | $305,000 | $290,000 | $285,000 |
| 401(k), 403(b), 457, Profit-Sharing Plans, etc. | |||
| Annual Compensation – 401(a)(17)/404(l) | $305,000 | $290,000 | $285,000 |
| Elective Deferrals – 402(g)(1), 457(e)(15) | $20,500 | $19,500 | $19,500 |
| Catch-up Contributions – 414(v)(2)(B)(i) | $6,500 | $6,500 | $6,500 |
| Defined Contribution Limits – 415(c)(1)(A) | $61,000 | $58,000 | $57,000 |
| Other | |||
| HCE Threshold – 414(q)(1)(B) | $135,000 | $130,000 | $130,000 |
| Defined Benefit Annual Limit – 415(b)(1)(A) | $245,000 | $230,000 | $230,000 |
| Key Employee – 416(i)(1)(A)(i) | $200,000 | $185,000 | $185,000 |
| Social Security Wage Base | $147,000 | $142,800 | $137,700 |
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