2022 Retirement Plan Limits

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email
Share on print
Print

The Internal Revenue Service has announced the 2022 dollar limitations for qualified retirement plans and other benefits.  Most of the limits will increase from 2021  and some remain unchanged. Knowing the limits available and how much you are able to contribute are an important part of your strategy for investing for retirement.

Maximizing your savings in these areas now will help you create the funds you’ll need to have better options for your retirement goals from lifestyle cost, healthcare charges, and even legacy gifting.

Retirement Plan Limits

savings piggy bank icon

Elective Deferral Limit

401(k)/403(b)/457(b)

$20,500

$20,500 in 2022 which is a $1,000 limit increase from 2021.
conduit debt icon

Catch-Up Contribution

(plans other than SIMPLE plans)

$6,500

$6,500 in 2022 which is the same limit as 2021.
LIBOR

SIMPLE Plan Employee Deferrals

$14,000

$14,000 in 2022 is an increase from $13,500 2021.
401k icon

SIMPLE Plan Catch-Up Contributions

$3,000

The $3,000 limit in 2022 is unchanged from the limit in 2021.

Plan Maximum Annual Contribution

Defined Contribution Plans (Section 415(c))

$61,000

$61,000 in 2022 which is an increase from a $58,000 limit in 2021.

Annual Contribution Limit including Catch-Up Contributions

$67,500

In 2022, the limit is $67,500 which is an increase from the $64,500 limit in 2021.
PPP1 Fund Use

Maximum Annual Benefit

Defined Benefit Plans

$245,000

$245,000 in 2022 is an increase from $230,000 2021.
match icon

Individual Retirement Account (IRA)

$6,000

The 2022 limit is $6,000 and the catch-up limit is $1,000. These numbers remain unchanged from 2021.

Contribution Limits

savings piggy bank icon

Maximum Plan Compensation

$305,000

$305,000 is the limit in 2022 which is an increase from the $290,000 limit in 2021.
blue circle with an icon of a social security card in the middle

Income Subject to Social Security

$147,000

In 2022, the limit is $147,000 which is an increase from $142,800 in 2021.
Unemployment v. PPP

Key Employee Compensation Threshold

$200,000

$200,000 in 2022 is an increase from $185,000 2021.
Fidcuciary icon

Highly Compensated EE Threshold

$135,000

The $135,000 limit in 2022 is an increase of $5,000 from the $130,000 limit in 2021

Contribution Limits

For your convenience, we created a 1-page guide with this information, which you can download and save here.  If you have questions about the best way to invest in the varying options available to you, our Wealth Management services can help! Just email by clicking the button below.

Earl Blackmon Headshot

Earl Blackmon, CPA

Avizo Group offers Wealth Management for clients who would like assistance in investing, saving, and portfolio diversification. This is an area of need for many of our clients who want to invest but need someone they know and trust to help them.  Earl Blackmon holds a Series 7 and Series 66 license.

Work With Us

We have four office locations to best serve you and your business. Feel free to stop by, call, or send an email to learn more about our services.

Call Now ButtonCall Us NowScroll to Top