Easy Money…2022 IRS Limits Announced Today
by Lyn Domenick
The IRS has announced the 2022 cost of living adjustments to qualified plan limits. As expected, many of the limits increased significantly compared with prior years. Below are the highlights, and our full historical chart can be found here for easy reference.
| 401(k), 403(b), Profit-Sharing Plans, etc. | |||
|---|---|---|---|
| 2022 | 2021 | 2020 | |
| Annual Compensation | 305,000 | 290,000 | 285,000 |
| Elective Deferrals | 20,500 | 19,500 | 19,500 |
| Catch-up Contributions | 6,500 | 6,500 | 6,500 |
| Defined Contribution Limit | 61,000 | 58,000 | 57,000 |
| ESOP Distribution Limits | 1,230,000 245,000 |
1,165,000 230,000 |
1,150,000 230,000 |
| Defined Benefit Limit | 245,000 | 230,000 | 230,000 |
| HCE Threshold | 135,000 | 130,000 | 130,000 |
| Key Employee | 200,000 | 185,000 | 185,000 |
| 457 Elective Deferrals | 20,500 | 19,500 | 19,000 |
| Taxable Wage Base | 147,000 | 142,800 | 137,700 |