On November 4, 2021, the IRS announced cost of living adjustments affecting qualified retirement plans for 2022. Almost all of the limits increased from 2021 to 2022, some by greater amounts than we have seen in some time.
|
Selected Limits |
2022 |
2021 |
|
401(k) Elective Deferrals |
$20,500 |
$19,500 |
|
401(k) Catch Up Deferrals |
$6,500 |
$6,500 |
|
Annual Defined Contribution Limit (Section 415) * |
$61,000 |
$58,000 |
|
Annual Compensation Limit ** |
$305,000 |
$290,000 |
|
Highly Compensated Employees (look-back year calculation)** |
$135,000 |
$130,000 |
|
Key Employee – Officer Threshold* |
$200,000 |
$185,000 |
|
Social Security Wage Base |
$147,000 |
$142,800 |
|
ESOP Threshold Balance for lengthening the 5-year installment period |
$1,230,000 |
$1,165,000 |
|
Amount for lengthening the 5-year ESOP installment period |
$245,000 |
$230,000 |
*Effective for limitation years ending in calendar year
**Effective for plan years beginning in the calendar year
