Priority Alert: 2022 Benefits and Contribution Limits
On November 4, 2021, the Internal Revenue Service (IRS) announced benefit and contribution limits for employer-sponsored retirement plans for the 2022 tax year. The chart below summarizes the 2022 limits, with 2021 limits included for comparison. This information is available on the Benefits & Contribution Limits page in the BA Guide.
| Plan / Limit | 2022 | 2021 | Code Section |
|---|---|---|---|
| 401(k) Pension Plan | |||
| Maximum annual compensation for calculating employer contributions | $305,000 | $290,000 | IRC §401(a)(17)/404(I) |
| Compensation limit for the definition of highly compensated employees | W-2 greater than $130,000 in 2021 | W-2 greater than $130,000 in 2020 | IRC §414(q)(1)(B) |
| Maximum annual additions (employer plus all employee contributions) | Lesser of total compensation; or $61,000 | Lesser of total compensation; or $58,000 | IRC§415(c) |
| Maximum amount of elective deferrals | $20,500 | $19,500 | IRC §402(g)(1) |
| Age 50 and over catch-up contributions | $6,500 | $6,500 | IRC §414(v) |
| FICA taxable wage base (OASDI) | $14,7000 | $142,800 | n/a |
| Retirement Security Plan | |||
| Maximum annual compensation for calculating benefit accruals | $305,000 | $290,000 | IRC §401(a)(17)/404(I) |
| Maximum annual annuity (payable in life only form of benefit); Adjusted lower for other forms of benefit and for commencement before age 62 | $245,000 | $230,000 | IRC §415(b)(1)(A) |
| 457(b) Plans* (For tax-exempt cooperative and governmental plans) | |||
| Maximum amount of elective deferrals and employer contributions | $20,500 | $19,500 | IRC §457(b)(2)/457(e)(15) |
| Special catch-up contributions (allowed in the three years prior to normal retirement age) | Lesser of 2x the annual deferral limit; or annual deferral limit plus the eligible amount not contributed in prior years | IRC §457(b)(3) | |
| Age 50 and over catch-up contributions (for governmental plans only) | $6,500 (only if not using special catch-up contribution option) | $6,500 (only if not using special catch-up contribution option) | IRC §414(v) |