2022 Qualified Plan Cost of Living Increases, 2022 Social Security Taxable Wage Base
By Mary Ellen Schill
November 4, 2021
On November 4, 2021 the Internal Revenue Service announced the cost-of-living adjustments for the various qualified retirement plan limits. The vast majority of the limits shown below have increased from last year.
|Qualified Plan Limit||Cost-of-Living Adjustments|
|401(k) and 403(b) elective deferral limit||2021 – $19,500
2022 – $20,500
|$200,000 compensation limit||2021 – $290,000
2022 – $305,000
|$160,000 defined benefit limit||2021 – $230,000
2022 – $245,000
|$40,000 defined contribution limit||2021 – $58,000
2022 – $61,000
|$80,000 definition of highly compensated employee||2021 – $130,000
2022 – $135,000
|SIMPLE IRA deferral limit||2021 – $13,500
2022 – $14,000
|Code Section 457 deferred compensation plan deferral limit||2021 – $19,500
2022 – $20,500
|Code Section 414(v) catch-up contribution limit for employee deferrals||2021 – $6,500
2022 – $6,500
All of the above are plan year limits (i.e., for the plan year which begins in 2022), with the exception of the Code Section 401(k) and Code Section 403(b) elective deferral limit, which is a calendar year limitation.
In addition, the Department of Health and Human Services has set the maximum taxable wages for the OASDI portion of the social security tax at $147,000 for 2022, which is an increase from the 2021 limit of $142,800.
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