Retirement

IRS Announces 2022 Cost-of-Living Adjustments for Retirement Plans

IRS Announces 2022 Cost-of-Living Adjustments for 401(k) Plan Limits and Thresholds

On November 4, 2021, the IRS issued Revenue Notice 2021-61 which provides the 2022 cost-of-living adjustments for inflation as provided by the Internal Revenue Code. For plan sponsors of retirement plans, the most applicable adjustments announced in Revenue Procedure 2021-61 are listed in the following table:

401(k) Plan Limits and Thresholds
 
Maximum Elective Deferral Dollar Limit 2022 (new) 2021 (old)
401(k) Plan* $20,500 $19,500
SIMPLE 401(k) Plan $14,000 $13,500
     
Maximum Catch-Up Contribution Dollar Limit 2022(new) 2021 (old)
401(k) Plan* $6,500* $6,500
SIMPLE 401(k) Plan

 

$3,000*

 

$3,000

 

*The elective deferral limit also applies to 403(b) contracts, 457 plans, and SARSEPs under IRC §§402(g), 457(e), and 414(v).
     
 
Annual Additions 2022 (new) 2021 (old)
Annual Addition Dollar Limit on Contributions $61,000 $58,000
     
Compensation 2021 (new) 2021 (old)
Annual Dollar Limit on Includible Compensation $305,000 $290,000
     
HCEs and Key Employees 2021 (new) 2021 (old)
Highly Compensated Employee Dollar Threshold $135,000 $130,000
Key Employees Dollar Thresholds    
          Officer Group $200,000 $185,000
          More-Than-1% Owner $150,000 $150,000
       

Be sure to check www.nbsbenefits.com/limits for the latest information on all limits related to retirement, health, and welfare benefit plans as well as consumer-driven health care.