{"id":10915,"date":"2021-11-10T10:02:57","date_gmt":"2021-11-10T15:02:57","guid":{"rendered":"https:\/\/gtm.com\/business\/?p=10915"},"modified":"2021-11-10T11:51:52","modified_gmt":"2021-11-10T16:51:52","slug":"2022-retirement-contribution-limits","status":"publish","type":"post","link":"https:\/\/gtm.com\/business\/2022-retirement-contribution-limits\/","title":{"rendered":"2022 Retirement Contribution Limits for 401K and IRA Plans"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10916\" src=\"https:\/\/gtm.com\/business\/wp-content\/uploads\/2021\/11\/piggy-g53445de63_1920.jpg\" alt=\"2022 retirement contribution limits\" width=\"1024\" height=\"563\" srcset=\"https:\/\/gtm.com\/business\/wp-content\/uploads\/2021\/11\/piggy-g53445de63_1920.jpg 1024w, https:\/\/gtm.com\/business\/wp-content\/uploads\/2021\/11\/piggy-g53445de63_1920-980x539.jpg 980w, https:\/\/gtm.com\/business\/wp-content\/uploads\/2021\/11\/piggy-g53445de63_1920-480x264.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/>The Internal Revenue Service (IRS) has released <a href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/n-21-61.pdf\">Notice 2021-61<\/a>, containing cost-of-living adjustments for 2022 that affect retirement contribution limits for employee 401(k) plans and individual retirement accounts (IRAs).<\/p>\n<h2>2022 401K and IRA Contribution Increases<\/h2>\n<p>The employee contribution limit for <strong>401(k) plans in 2022 has increased to<\/strong> <strong>$20,500<\/strong>, up from $19,500 for 2021 and 2020. Other key limit increases include the following:<\/p>\n<ul>\n<li>The employee contribution limit for <strong>SIMPLE IRAs and SIMPLE 401(k)<\/strong> plans is increased to <strong>$14,000<\/strong>, up from $13,500.<\/li>\n<li>The limits used to define a \u201chighly compensated employee\u201d and a \u201ckey employee\u201d are increased to <strong>$135,000 <\/strong>(up from $130,000) and <strong>$200,000 <\/strong>(up from $185,000), respectively.<\/li>\n<li>The <strong>annual limit for defined contribution plans<\/strong> (for example, 401(k) plans, profit-sharing plans, and money purchase plans) is increased to <strong>$61,000<\/strong>, up from $58,000.<\/li>\n<li>The <strong>annual\u00a0<\/strong><strong>compensation limit<\/strong> (applicable to many retirement plans) is increased to <strong>$305,000<\/strong>, up from $290,000.<\/li>\n<\/ul>\n<p>The income ranges for determining eligibility to make deductible contributions to traditional IRAs, contribute to Roth IRAs and claim the Saver\u2019s Credit (also known as the Retirement Savings Contributions Credit) also increased for 2022. The IRS <strong><a style=\"font-weight: 500;\" href=\"https:\/\/www.irs.gov\/newsroom\/irs-announces-401k-limit-increases-to-20500\">news release<\/a><span style=\"font-weight: 500;\"> contains more details.<\/span><\/strong><\/p>\n<h2>Unchanged 2022 401K and IRA Contribution Amounts<\/h2>\n<p>Key limits that remain unchanged include the employee contribution limit for <strong>IRAs<\/strong> (remaining at <strong>$6,000<\/strong>) and the catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government\u2019s Thrift Savings Plan (remaining at <strong>$6,500<\/strong>).<\/p>\n<p>The effective date of the 2022 retirement plan limits is January 1, 2022.<\/p>\n<p>GTM makes it easy to update your employee contributions with our <a href=\"https:\/\/gtm.com\/business\/what-we-offer\/human-capital-management\/\">isolved payroll and HR platform<\/a>. Make changes once and the data flows throughout the system \u2013no need for duplicate entries, saving you time and reducing errors. <a href=\"https:\/\/gtm.com\/business\/get-a-quote\/\">Request a free quote<\/a> to learn more.<\/p>\n<p><em>\u00a92021 Zywave, Inc. All rights reserved.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here are the 2022 retirement contribution limits for employee 401(k) and IRA plans.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[232],"tags":[219,26,36],"post_folder":[],"class_list":["post-10915","post","type-post","status-publish","format-standard","hentry","category-gtm-biz-blog-isolved","tag-401k","tag-irs","tag-retirement"],"_links":{"self":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/10915","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/comments?post=10915"}],"version-history":[{"count":4,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/10915\/revisions"}],"predecessor-version":[{"id":10934,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/10915\/revisions\/10934"}],"wp:attachment":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/media?parent=10915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/categories?post=10915"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/tags?post=10915"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/post_folder?post=10915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}