IRS Announces 2022 Retirement Plan Contribution Limits (401k, 403b, 457 plans)
The IRS has published the annual cost of living adjustments ( IRS Notice 2021-61 ), affecting 2022 contribution limits for retirement plans and retirement-related items. The contribution limits for 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan have been increased. HR managers should inform participants of the higher 2022 limits. This is a good time for your employees to review and update their contribution amounts to take advantage of all available retirement savings opportunities. The 2022 dollar limits for 401(k), 403(b), and 457(b) plan elective deferrals have been raised to $20,500. This is an increase of $1,000 over the 2021 limit of $19,500. Catch-up contributions for those aged 50 or older also remain the same as last year's $6,500. Defined contribution plan limits received a bump to $61,000, an increase of $2,000 above the 2021 limit. The income limits for the Retirement Savings Contributions Credit (Saver's Credit) have been increased by betw