The Internal Revenue Service has announced inflation-adjusted retirement plan limits for 2022. These limits are commonly used in the administration of retirement plans.
| Category | 2021 | 2022 |
|---|---|---|
| Elective Deferral Limit for 401(k) and 403(b) Plans | $19,500 | $20,500 |
| Annual Additions Limit for Defined Contribution Plans | $58,000 | $61,000 |
| Limit on Annual Benefits for Defined Benefit Plans | $230,000 | $245,000 |
| Age 50 Catch-up Contribution Limit for 401(k) and 403(b) Plans | $6,500 | $6,500 |
| Annual Compensation Limit | $290,000 | $305,000 |
| Highly Compensated Employee Compensation Limit | $130,000 | $135,000 |
| Key Employee Officer Compensation Limit | $185,000 | $200,000 |
| SIMPLE Retirement Plan Contribution Limit | $13,500 | $14,000 |
| Social Security Wage Base | $142,800 | $147,000 |
| Medicare Wage Base | No Limit | No Limit |