- within Insolvency/Bankruptcy/Re-Structuring, Government and Public Sector topic(s)
The Internal Revenue Service released the cost-of-living adjusted qualified retirement plan limitations effective January 1, 2022. For ease of reference and comparison to prior years, we have placed the adjusted limitations in the table below. For more information, refer to IRS Notice 2021-61 and to the Social Security Administration's 2022 Cost-of-Living Adjustment Fact Sheet.
|
Type of Limitation |
2022 |
2021 |
2020 |
2019 |
2018 |
|
Elective Deferrals (401(k), 403(b), 457(b)(2) and 457(c)(1)) |
$20,500 |
$19,500 |
$19,500 |
$19,000 |
$18,500 |
|
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans (457(b)(3) and 402(g) provide separate catch-up rules) |
$6,500 |
$6,500 |
$6,500 |
$6,000 |
$6,000 |
|
SIMPLE Salary Deferral |
$14,000 |
$13,500 |
$13,500 |
$13,000 |
$12,500 |
|
SIMPLE 401(k) or regular SIMPLE plans, Catch-Up Deferrals |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
$3,000 |
|
415 limit for Defined Benefit Plans |
$245,000 |
$230,000 |
$230,000 |
$225,000 |
$220,000 |
|
415 limit for Defined Contribution Plans |
$61,000 |
$58,000 |
$57,000 |
$56,000 |
$55,000 |
|
Annual Compensation Limit |
$305,000 |
$290,000 |
$285,000 |
$280,000 |
$275,000 |
|
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993 |
$450,000 |
$430,000 |
$425,000 |
$415,000 |
$405,000 |
|
Highly Compensated Employee 414(q)(1)(B) |
$135,000 |
$130,000 |
$130,000 |
$125,000 |
$120,000 |
|
Key employee in top heavy plan (officer) |
$200,000 |
$185,000 |
$185,000 |
$180,000 |
$175,000 |
|
ESOP Maximum balance |
$1,230,000 |
$1,165,000 |
$1,150,000 |
$1,130,000 |
$1,105,000 |
|
Amount for Lengthening of 5-Year ESOP Period |
$245,000 |
$230,000 |
$230,000 |
$225,000 |
$220,000 |
|
Taxable Wage Base |
$147,000 |
$142,800 |
$137,700 |
$132,900 |
$128,400 |
|
IRAs for individuals 49 and below |
$6,000 |
$6,000 |
$6,000 |
$6,000 |
$5,500 |
|
IRAs for individuals 50 and above |
$7,000 |
$7,000 |
$7,000 |
$7,000 |
$6,500 |
|
FICA Tax for employees and employers |
7.65% |
7.65% |
7.65% |
7.65% |
7.65% |
|
Health Savings Account limit |
$3,650/ind. |
$3,600/ind. |
$3,550/ind. |
$3,500/ind. |
$3,450/ind. |
|
Health Flexible Spending Account Limit |
$2,750 |
$2,750 |
$2,750 |
$2,700 |
$2,650 |
|
Dependent Care Savings Account Limit* |
$5,000 |
$5,000 |
$5,000 |
$5,000 |
$5,000 |
|
Additional Medicare Tax** |
.9% of comp |
.9% of comp |
.9% of comp |
.9% of comp |
.9% of comp |
*IRS Notice 2021-26 describes special rules for 2021
**An employer must withhold Additional Medicare Tax on wages or compensation paid to an employee in excess of $200,000 in a calendar year for single/head of household filing status ($250,000 for married filing jointly).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
