The IRS announced 2022 dollar limits on benefits and contributions for qualified retirement plans.
Listed below are the most common limits.
Defined Contribution Plans
- The contribution limit for elective deferrals is increased from $19,500 to $20,500.
- The total contribution limit for employer and employee contributions has increased from $58,000 to $61,000.
- The annual compensation limit increases to $305,000 from $290,000
- The age 50 catch-up is unchanged and remains at $6,500
- The limit for defining ‘highly compensated employee’ for top heavy determination has increased to $135,000 from $130,000
- The annual contribution limit remains at $6,000
- The age 50 catch-up remains at $1,000
- SIMPLE IRA contribution limits increased to $14,000 from $13,500
- The income limits allowing for an IRA deduction were increased for several different types of tax filers (i.e., single, married filing jointly, etc.)
- The phase out for eligibility to contribute to a Roth IRA were increased as well
Defined Benefit Plans
- The limitation on the annual benefit has increased to $245,000 from $230,000
For additional information, download our 2022 Maximum Benefits and Contribution Limits reference material.