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UPDATED to reflect issuance of IRS Rev. Proc. 2021-45

The Internal Revenue Service released the cost-of-living adjusted qualified retirement plan limitations effective January 1, 2022.  For ease of reference and comparison to prior years, we have placed the adjusted limitations in the table below.  For more information, refer to IRS Notice 2021-61 and to the Social Security Administration’s 2022 Cost-of-Living Adjustment Fact Sheet.

Type of Limitation

2022

2021

2020

2019

2018

Elective Deferrals (401(k), 403(b), 457(b)(2) and 457(c)(1))

$20,500

$19,500

$19,500

$19,000

$18,500

Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans (457(b)(3) and 402(g) provide separate catch-up rules)

$6,500

$6,500

$6,500

$6,000

$6,000

SIMPLE Salary Deferral

$14,000

$13,500

$13,500

$13,000

$12,500

SIMPLE 401(k) or regular SIMPLE plans, Catch-Up Deferrals

$3,000

$3,000

$3,000

$3,000

$3,000

415 limit for Defined Benefit Plans

$245,000

$230,000

$230,000

$225,000

$220,000

415 limit for Defined Contribution Plans

$61,000

$58,000

$57,000

$56,000

$55,000

Annual Compensation Limit

$305,000

$290,000

$285,000

$280,000

$275,000

Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993

 

$450,000

 

$430,000

 

$425,000

 

$415,000

 

$405,000

Highly Compensated Employee 414(q)(1)(B)

$135,000

$130,000

$130,000

$125,000

$120,000

Key employee in top heavy plan (officer)

$200,000

$185,000

$185,000

$180,000

$175,000

ESOP Maximum balance

$1,230,000

$1,165,000

$1,150,000

$1,130,000

$1,105,000

Amount for Lengthening of 5-Year ESOP Period

$245,000

$230,000

$230,000

$225,000

$220,000

Taxable Wage Base

$147,000

$142,800

$137,700

$132,900

$128,400

IRAs for individuals 49 and below

$6,000

$6,000

$6,000

$6,000

$5,500

IRAs for individuals 50 and above

$7,000

$7,000

$7,000

$7,000

$6,500

FICA Tax for employees and employers
   Social Security Component
   Medicare Component

7.65%
6.2%
1.45%

7.65%
6.2%
1.45%

7.65%
6.2%
1.45%

7.65%
6.2%
1.45%

7.65%
6.2%
1.45%

Health Savings Account limit

$3,650/ind.
$7,300/family

$3,600/ind.
$7,200/family

$3,550/ind.
$7,100/family

$3,500/ind.
$7,000/family

$3,450/ind.
$6,900/family

Health Flexible Spending Account Limit

$2,850

$2,750

$2,750

$2,700

$2,650

Dependent Care Savings Account Limit*

$5,000

$5,000

$5,000

$5,000

$5,000

Additional Medicare Tax**
   single or head of household
   married filing jointly

.9% of comp
>$200,000
>$250,000

.9% of comp
>$200,000
>$250,000

.9% of comp
>$200,000
>$250,000

.9% of comp
>$200,000
>$250,000

.9% of comp
>$200,000
>$250,000

*IRS Notice 2021-26 describes special rules for 2021

**An employer must withhold Additional Medicare Tax on wages or compensation paid to an employee in excess of $200,000 in a calendar year for single/head of household filing status ($250,000 for married filing jointly).