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IRS Limits

On Nov. 4, 2021, the IRS released the cost-of-living adjustments for various retirement plan limitations that will take effect on Jan. 1, 2022. Selected 2021 and 2020 annual limits are provided below.

Provision 2022 2021
DC Plan 415(c)(1)(A) Additions $61,000 $58,000
401(k)/403(b) SARSEP Elective Deferrals $20,500 $19,500
457 Deferrals $20,500 $19,500
Age 50 Catch-Ups for 401(k), 403(b) and 457 Plans $6,500 $6,500
Key Employee Income Definition $200,000 $185,000
Highly-Compensated Employee Income Definition $135,000 $130,000
Compensation Limit for Contribution Purposes in accordance with IRC Section 401(a)(17) for Non-Gov. Plan Sponsors $305,000 $290,000
Compensation Limit for Contribution Purposes in accordance with IRC Section 401(a)(17) for Governmental Plan Sponsors $450,000 $430,000
Maximum Adjusted Gross Income for Saver’s Credit $68,000 (joint)
$34,000 (single)
$51,000 (HoH)
$66,000 (joint)
$33,000 (single)
$49,500 (HoH)
SIMPLE Retirement Accounts $14,000 $13,500
Compensation for SEPs $650 $650
Earning Subject to OASDI Tax $147,700 $142,800

Source: IRS Notice 2020-79 and Notice 2021-61.

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