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.
Retirement Plan Contribution Limits
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.
Additional Changes
Other changes in 2022 include:
Traditional IRA income phase-out ranges for 2022:
- $68,000 to $78,000 for single taxpayers
- $109,000 to $129,000 for married couples filing jointly
- $204,000 to $214,000 for married couples filing jointly with one non participating spouse
Roth IRA income phase-out ranges for 2022:
- $129,000 to $144,000 for single taxpayers and heads of household
- $204,000 to $214,000 for married couples filing jointly
- $0 to $10,000 for married couples filing separately
Saver’s Credit income phase-out ranges for 2022 are:
- $41,000 to $68,000 for married couples filing jointly
- $30,750 to $51,000 for head of household
- $20,500 to $34,000 for single and married individuals filing separately
IRS changes to the contribution limits for Health Savings Account (HSA) and Flexible Spending Accounts (FSA) can be found here.