In 2022, employees of businesses that offer retirement plans are eligible to increase their retirement account contributions per the Internal Revenue Service. Every year, the IRS reviews and makes any necessary changes to the contribution limits for retirement plans. These changes are based on the cost-of-living adjustments from the IRS.
The IRS changes to the contribution limits for 2022 are as follows:
| 2021 | 2022 | Change | |
| 401(k) Contribution Limit | $19,500 | $20,500 | +$1,000 |
| 401(k) Catch-Up for Age 50 & Older | $6,500 | $6,500 | no change |
| SIMPLE IRA Contribution Limit | $13,500 | $14,000 | +$500 |
| SIMPLE IRA Catch-Up for Age 50 & Older | $3,000 | $3,000 | no change |
| 401(a)(17)Compensation Limits | $290,000 | $305,000 | +$15,000 |
| 415(b) Annual Benefit Limit – Defined Benefit Dollar Limit | $230,000 | $245,000 | +$15,000 |
| 415(c) Individual Annual Addition Contribution Limit | $58,000 | $61,000 | +$3,000 |
| 416(i) Key Employee Threshold | $185,000 | $200,000 | +$15,000 |
| Highly Compensated Determination Limit (HCE) | $130,000 | $135,000 | +$5,000 |
Knowing these new limits is important for businesses to stay compliant.
Other changes in 2022 include:
Traditional IRA income phase-out ranges for 2022:
Roth IRA income phase-out ranges for 2022:
Saver’s Credit income phase-out ranges for 2022 are:
IRS changes to the contribution limits for Health Savings Account (HSA) and Flexible Spending Accounts (FSA) can be found here.