With the close of the year coming it is time to look at benefit limits for 401(k) and other qualified plans.
Type of Limitation | 2022 | 2021 |
401(k) Contribution Limits | $20,500 | $19,500 |
401(k) Catch Up Contribution (over age 50) | $6,500 | $6,500 |
Defined Contribution Plan Annual Limit | $61,000 | $58,000 |
SIMPLE Maximum Annual Elective Deferral | $14,000 | $13,500 |
SIMPLE 401(k) or IRA Catch Up Limit (over age 50) | $3,000 | $3,000 |
Traditional IRA Contribution Limit | $6,000 | $6,000 |
Traditional IRA Catch-Up Contribution (over age 50) | $1,000 | $1,000 |
Annual Allowable Compensation Limit | $305,000 | $290,000 |
Highly Compensated Employee | $135,000 (1) | $130,000 (2) |
Key Employee (3) | $200,000 | $185,000 |
Income Subject to Social Security Tax | $147,000 | $142,800 |
Health Savings Account Contributions (Individual) | $3,650 | $3,600 |
Health Savings Account Contributions (Family) | $7,300 | $7,200 |
Health Savings Account Catch-Up Contribution (over age 55) | $1,000 | $1,000 |
Flexible Spending Account (FSA) Limits | $2,850 | $2,750 |
(1) Applies for determining highly compensated employees for the 2023 plan year
(2) Applies for determining highly compensated employees for the 2022 plan year
(3) Please refer to the IRS website and your plan document for alternate definitions of ‘Key Employee’
This content is for general information only and is believed to be accurate and reliable as of 11/16/2021, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice. Please consult with your professional advisor for more information.