The IRS has released the 2022 Contribution Limits for 401(k) and other
retirement plans. IRS Notice 2021-61 was issued on November 4, 2021.
Participants of 401(k) and 403(b) Plans will be able to defer up to $20,500 (increased
from $19,500), and, if age 50 or older, an additional $6,500 (no change) in
catch-up contributions.
For 401(k) Plans which also have Profit Sharing provisions, the maximum
allocation for each participant will be $61,000 (increased from $58,000). This
includes 401(k) deferral, matching and forfeitures allocated. The catch-up
contribution is over and above for a maximum of $67,500 for those aged 50 or
older.
Participants in a SIMPLE IRA will be able to contribute up to $ 14,000 (increased from $13,500), and, if age 50 or older, an additional $3,000 (no change) in catch-up contributions.
IRA contribution limits will be unchanged. The maximum deductible IRA
contribution will be $6,000, and, if age 50 or older, an additional $1,000 in
catch-up contributions.
The Social Security Taxable Wage Base will increase to $147,000.