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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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