Benefit Plan Limits

2021 EMPLOYEE BENEFIT PLAN LIMITS

The IRS recently released employee benefit plan limits for 2022.  There are several changes for 2022.

PLAN LIMITATIONS 2020 2021 2022
Annual Compensation Limit $285,000 $290,000 $305,000
Defined Contribution Maximum Annual Contribution $57,000 $58,000 $61,000
Annual §401(k) Employee Deferral Limit $19,500 $19,500 $20,500
Age 50 Catch-up Contributions to §401(k) Plan $6,500 $6,500 $6,500
Highly Compensated Employee Threshold $130,000 $130,000 $135,000
Income subject to Social Security Wage Base $137,700 $142,800 $147,000
Traditional or Roth IRA Limit $6,000 $6,000 $6,000
Age 50 IRA Catch-up Limit $1,000 $1,000 $,1000

Please share this information with your payroll personnel so they are aware of these limits.